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The 
Workmen's Insurance Code 

/^^^.o^.....—^ ;^^REICHS-VERS[CHERUNGSORDNUNG) 

OF 

July 19, 1911 

OF 

Germany 



A TRANSLATION 

BY 

HENRY J. HARRIS, Ph.D. 



Reprinted from Bulletin 96 of the 

United States Bureau of 

Labor. 



WASHINGTON 
1911 



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CONTENTS 

Page. 

Introduction 501-506 

Analysis of the code and the introductory Jaw 507-513 

Book I. — General provisions 514-536 

Book II. — Sickness insurance 537-589 

Book III. — Accident insurance 590-682 

Part 1. — [ndustrial accident insurance 590-639 

Part 2. — Agricultural accident insurance 640-659 

Part 3. — Navigation accident association 659-682 

Book IV. — Invalidity and survivors' insurance 683-718 

Book V. — Relations of the insurance carriers to each 

other and to other bodies 719-724 

Book VI. — Procedure 725-757 

A. — Determination of benefits 725-753 

B. — Other judgment matters 754 

C. — Decision procedure 754-757 

D. — Costs and fees 757 

Introductory law for the Workmen's Insurance Code.. . . 758-774 



THE WORKMEN'S INSURANCE CODE OF JULY 19, 1911, OF 

GERMANY. 

TRANSLATED BY HENRY J. HARRIS, PH. D. 
INTRODUCTION. 

The Twenty-Fourth Annual Report of the Commissioner of Labor, 
entitled ^'Workmen's Insurance and Compensation Systems in 
Europe," contained a section devoted to the workmen's insurance 
system of Germany. In this section was given an account of the 
official plan for the revision and extension of the workmen's insurance 
S3'stem, but at the time the volume was published the German 
Parliament had not acted on the Government's plan. As finally 
adopted by the legislative body, a number of changes were made, 
which makes it necessary to outline briefly the general features of the 
new codification of all the workmen's insurance laws. 

For those who may wish to make a comparison of the new code 
with the former laws it may be stated that a translation of the law of 
June 30, 1900, relating to the accident insurance of persons employed 
in manufacturing and similar industries, was given on pages 2509 to 
2552 of Volume II of the report just mentioned, while a translation of 
the invalidity insurance law of 1899 will be found on pages 966 to 
1002 of Bulletin No. 91 of the Bureau of Labor. 

The law of July 19, 1911, is a codification of all the legislation 
relating to the several branches of workmen's insurance in the German 
Empire. Previous to the date of this act the sickness insurance, the 
accident insurance, and the invaliditj^ insurance were each regulated 
by a separate law or series of laws. At the time when the compulsory 
insurance system was introduced into Germany the plan of having 
the three branches of insurance adopted simultaneously was con- 
sidered, but was declared by Bismarck to be a task of such magnitude 
that no other plan was feasible except to introduce the various 
branches of insurance one after the other. Furthermore, it was 
found necessary to introduce the insurance laws for the different 
industries, one after the other, so that while the first accident insur- 
ance law was enacted in 1884 it required five additional laws to cover 
all the industries which were intended to be included in this branch 
of the v/orkmen's insurance system. A somewhat similar procedure 
was followed in the case of the sickness insurance and the invalidity 
and old-age insurance. All of the insurance laws were revised and 
to some extent codified between the years 1899 and 1903, but it was 
not until 1910 that a single law covering all phases of workmen's 
insurance was drafted by the German Government. The codification 
18544°— No. 96—12 11 501 



502 BULLETII!^ OF THE BUEEAU OF LABOR. 

of 1911 therefore represents the experience of a quarter of a century 
in a system of compulsory insurance covering practically the whole 
industrial population of the German Empire. 

GENERAL FEATURES. 

The new workmen's insurance code has retained the former gen- 
eral scheme of organization; although frequentl}^ advocated, there 
has been no attempt to consolidate the organizations conducting the 
sickness, accident, and invalidity insurance. Separate administra- 
tive bodies conduct these three branches of insurance, wdiile the new 
branch, the insurance for widows and orphans, or as the law terms 
it, 'Hhe survivors' insurance," is carried on by the invalidity insur- 
ance organizations. A new feature which the code introduces is 
the system of government offices to supervise the insurance organ- 

* izations. The first of these new institutions is designated in the 
following translation as '^ local insurance office" {Versiclierungsamt) 
and covers a district of small area, usually of one or a few communes 
or parishes. Above the local insurance office is the so-called ''supe- 
rior insurance office" (OherversicJierungsamt) , which supervises opera- 
tions in insurance matters and whose most important function is 
the work formerly performed by the arbitration courts for work- 
men's insurance which were abolished by the new law. The central 
administrative body is the imperial insurance office {Reichsvericher- 
ungsamt), except in the case of Bavaria, the Kingdom of Saxony, 
Wurtemberg, and Baden, where State insurance offices (Landesver- 
sicherungsamt) take the place of the imperial insurance office for 
insurance organizations located entirely within the boundaries of 
these States. In all of these Government offices the plan of having 
representatives of the employers and of the insured persons partici- 

' pate to a large degree in the administration of the insurance has been 

retained. 

SICKNESS INSURANCE. 

The workmen's insurance code provides for six types of sicloiess 
insurance funds: Local sick funds, rural sick funds, establishment 
sick funds, guild sick funds, miner's sick funds, and substitute 
sick funds. The former communal or parish sickness insurance 
has been abolished. The local insurance funds provide the insur- 
ance for the greater number of insured persons, and in particular for 
persons not included in any of the other groups mentioned above ; 
these funds are practically a continuation of the former local insur- 
ance funds and are also intended to provide for persons formerly 
included in the communal sickness insurance. The rural sick funds 
are a new institution and are not necessarily confined to rural dis- 
tricts, but may also exist for cities ; these funds provide for the sickness 
insurance of household servants, persons engaged in home working 
industries, casual laborers, farm laborers, etc. This is the only new 



WOKKMEI^'S IXSUEAXCE CODE OF JULY 19^ 1911 GERMANY. 503 

type of insurance fund provided for the sickness insurance. The 
other types of funds are practically the same as those instituted by 
former sicloiess insurance laws; the so-called substitute funds are 
merely the mutual-aid funds which are recognized under the preceding 
laws and which are allowed to continue, though under more careful 
supervision and with certain restrictions as to size, etc. The tend- 
ency in the new law has been to encourage sick funds of larger size, 
as experience had shown that funds with a smaller number of members 
did not possess a sufficiently extensive actuarial basis. 

The groups of persons brought under the compulsory sickness 
insurance for the first time are the following: Household servants, 
clerks and apprentices in pharmacies, members of orchestras and 
theatrical companies, teachers and tutors, persons engaged in home- 
working industries, ship's crews of German sea-going vessels and the 
crews of vessels engaged in inland navigation. Voluntary insurance 
is permitted under more liberal conditions than heretofore. 

During the discussion of the provisions of the code an attempt was 
made to change the proportion of contributions paid by the employer 
and by the insured persons. As finally enacted, the existing plan of 
having emplo3"ers pay one-third and the insured persons two-tliirds 
of the contributions has been retained; in the case of members of 
guild sick funds, however, the contributions may be levied in the pro- 
portion of one-half upon each party. 

The benefits of the sickness insurance are practically unchanged in 
the new law and consist of medical care, a sick wage, hospital care, 
and care in the home, together with an allowance for the famil}^ in 
the case of hospital treatment; in addition, a pecuniary sick benefit 
is paid in maternity cases for a period of eight weeks. The funeral 
benefit consists of 20 times the amount of the wage of the insured per- 
son used as a basis for computing dues and benefits. Under the law, 
the sick funds are allowed to vary these benefits in a number of ways, 
and likewise the funds may extend the amount and duration of the 
benefits in certain cases. 

ACCIDENT INSURANCE. 

The organization of the accident insurance is practically unchanged 
under the new code. The functions of the former subsidiar}^ insur- 
ance institutes ( Ver sicker ungs-Anstdlt en) have been slightly increased, 
and in the future they will be designated as ''branch institutes" 
(Zweig-Anstalten) . Their special function is to provide insurance 
for petty buisiness undertakers of all kinds, and more especiall}' in the 
building trades, livery and hauling, inland navigation, and marine 
navigation. These branch institutes arc subsidiary organizations of 
the accident association for these industries and are administered 
either directly or indirectly by the governing bodies of the accident 



504 BULLETIISr OF THE BUEEAU OF LABOR. 

associations, though the branch institutes as heretofore have a legal 
and formal separate existence. 

The classes of persons insured are still composed of workmen and 
administrative 6r ojDerating officials; the latter, however, only in so 
far as their annual earnings do not exceed 5,000 marks ($1,190), this 
amount having previously been 3,000 marks ($714). 

The new industry branches included in the insurance are certain 
groups of breweries, pharmacies, tanneries, bath estabhshments, 
fishing in inland waters, fish culture, ice cutting, and estabhshments 
conducted as a business for the keeping of livery stables for draft 
animals, riding animals, and breeding animals, and the keeping of 
conveyances and riding animals. 

The accident insurance for agriculture and forestry and for marine 
navigation is practically unchanged. 

The system of collecting assessments each year to cover the ex- 
penditures for the preceding year, modified by a reserve the interest 
of which is intended to reduce the annual assessments, has not been 
changed. As heretofore, the branch institutes, however, annually col- 
lect premiums sufficient to cover the capitalized value of the pension 
granted instead of using the assessment system, i^nnual salaries 
in excess of 1,800 marks ($428) have only one-third of the excess 
counted. In agriculture a different basis of assessment may be used, 
namely, the so-called ' 'labor-need," though the land tax, the area 
cultivated, or some other basis may also be used. No change has 
been made in the system of risk tariffs for industrial establishments. 

The definition of industrial accident has gradually been made more 
exact during the 25 years' experience under the various laws. The 
code does not include industrial or occupational diseases as accidents, 
but authorizes the federal council to include such diseases under acci- 
dent insurance. The definition of an industrial accident as now pre- 
scribed specifies that it must be a sudden event occurring at a specific 
time, and having a causal connection with the operation of the estab- 
hshment. 

The benefits of the accident insurance have not been changed by 
the new code. 

INVALIDITY AND SURVIVORS' INSURANCE. 

The invalidity insurance is conducted by territorial organizations, 
these organizations being directed by committees, etc., consisting one- 
half of employers and one-half of insured persons. The governments, 
either State or local, appoint the officials who conduct the current 
affairs of these organizations. For a few industries, such as trans- 
portation, mining, etc., '^ special institutes" are allowed to conduct 
the insurance of persons engaged in these industries. 

The new feature of the insurance code is that relating to survivors' 
insurance, or, as it is popularly called, widows' and orphans' insurance. 



workmen's insurance code of JULY 19, 1911 GERMANY. 505 

This branch of insurance is to be conducted by the territorial organi- 
zations which administer the invahdity insurance. 

The new groups of persons included under the invalidity insurance 
are clerks and apprentices in pharmacies and members of orchestras 
and theater companies. By the decrees of the federal council the 
invalidity insurance has already been extended to persons engaged in 
home- working trades, to persons engaged in tobacco industries, and to 
a large proportion of persons engaged in textile industries. An effort 
has been made in the code to make the group of persons covered by 
the invalidity insurance identical with that covered by the sickness 
insurance. The provisions as to voluntary insurance and as to the 
continuation of insurance in the case of a person who ceases to be 
employed in an industry requiring compulsory insurance have been 
made more liberal. An important innovation is that designated as 
'^ voluntary supplementary insurance," according to which the 
amount of the invalidity pension (but not of the other benefits) can 
be increased by payments of sums of 1 mark (23.8 cents) at any 
time and in any amount. Persons who have made such payments 
receive a supplementary pension equal to an annual sum consisting 
of 2 pfennigs (0.48 cents) for each mark so paid, multiplied by the 
number of years between the year of payment and the date of 
invalidity. 

On account of the new features of the invalidity insurance, an 
increase in dues was necessary; the increase in the lower wage classes 
was one-fifth or less, wliile in the three upper wage classes, namely, 
those persons earning 550 marks ($130.90) or over, the increase 
in contributions is about one-third. As before, the contributions are 
paid one-half by the employers and one-half by the insured person, 
while the Empire annually grants a subsidy of 50 marks ($11.90) to 
each pension. 

The former method of payments of contributions through stamps 
pasted on receipt cards has been retained; in the case of persons 
engaged for periods of time such as by a quarter or by the year, the 
stamps may be affixed at such intervals of time. Under certain cir- 
cumstances the insured person himself may affix the stamps and 
require the emplo3^er to repa}^ one-half of the contribution. All cards 
must be renewed at the local office of the insurance institute at least 
once in two years. The new code restricts the possibility of making 
effective a claim to a new valid pension which has once lapsed; in 
particular, the conditions are more strict for persons who have passed 
their fortieth year of life, and especially difficult for those who have 
passed their sixtieth year. 

Benefits are paid on the occurrence of *4nvalidity "; that is, a 
disability caused by sickness or ph3^sical defect which prevents the 
insured person from earning one-third of the amount which a normal 



506 BULLETIN OF THE BUBEAU OF LABOR. 

person of similar training and status in life is able to earn. In this 
case the previous occupation and thfe person's aptitude for another 
occupation are taken into account in ascertaining his right to a 
pension. 

Under the code, the invalidity pension consists of an annual subsidy 
from the Empire, a basic amount fixed by the number of contributions 
paid and a subsidy of one-tenth of the pension for each child of the 
pensioner under 15 years of age, with a maximum of five-tenths. 

An old-age pension is paid after the completion of the seventieth 
year of life without regard to the physical condition of the claimant, 
and has not been changed as to its amount or as to the age limit. 

The new widow's pension is a benefit paid to the invalid widow of 
an insured person, so long as she remains unmarried, and consists of 
an imperial subsidy of 50 marks ($11.90) annually, plus three-tenths 
of the invahdity pension of the deceased. The orphan's pension is 
paid to the orphans of the insured person under 15 years of age and 
consists of an annual subsidy from the Imperial Government equal 
to 25 marks ($5.95) and three-twentieths of the invalidity pension of 
the deceased for one orphan, and one-fortieth of this pension for each 
additional orphan. The orphan's pension, however, may not exceed 
the amount of the invalidity pension of the deceased, and the total 
sum of the orphan's and widow's pensions may not be more than one 
and one-half times the pension of the deceased. 

Anew benefit, designated as ''widow money," is paid to such persons 
on the death of the insured person and is equal to the amount of one 
year's pension of the widow, plus 50 marks ($11.90) imperial subsidy. 

Another new benefit is the orphan's benefit, paid when the orphan 
completes his fifteenth year of life, and is equal to eight times the 
monthly amount of the orphan's pension, plus 16§ marks ($3.97) 
impeiial subsidy. 

The date when all of the provisions of the new code are to be 
put into force is to be announced in the Reichs-Gesetzblatt. The issues 
of this gazette up to November 1, 1911, have not contained any orders 
on this subject.^ 

1 The periodical Soziale Praxis of Oct. 19, 1911, contained the following statement: 

"The postponement of the date when the workmen's insurance code goes into force to Jan. 1, 1913, is 
announced by the Zentralblatt der Reichsversicherung. 

"The difficulties which developed in drawing up the administrative regulations for carrying into eiiect 
the imperial insurance code, both on the part of the imperial and of the State officials, made this post- 
ponement necessary. In i>articular, the merging of the existing rules with the new regulations has required 
more time than was anticipated, and likewise the work necessary in connection with the new application of 
the insurance status to casual laborers and to the home-working industries showed that the earlier date 
was impossible, though heretofore the date of July 1, 1912, has been assumed to be the one which would be 
adopted. 

" On the other hand, attention should be called to the fact that the regulations for the introduction of the 
insurance code, as stated in the introductory law to the code, came into force immediately upon their 
pubUcation, namely, on Aug. 1, 1911, and that the provisions relatmg to the invalidity and sur\nvors' 
insurance (Book Four) come into force on Jan. 1, 1912, without fail. The only question, therefore, is in 
regard to the regulations concerning the sickness insurance and the accident insurance. According to 
other reports, a definite date for putting these two parts of the insurance code into force has not yet been 
determined." 



workmen's insurance code of JULY 19^ 1911 GERMANY. 507 

ANALYSIS OF THE CODE AND THE INTRODUCTORY LAW. 

Book One. — Greneral provisions: Article. 

Section One. — Scope of the imperial insurance 1, 2 

, Section' Two. — Carriers of the imperial insurance— 

I. Designation 3 

II. Legal competence 4 

III. Administrative bodies 5-11 

IV. Honorary offices 12-24 

V. Assets 25-29 

VI. Supervision 30-34 

Section Three. — Insurance authorities — 

I. General provisions 35 

II. Local insurance offices — 

1. Establishment 36-38 

2. Composition 39-55 

3. Committees 56-58 

4. Costs 59, 60 

III. Superior insurance offices— 

1. Establishment 61-67 

2. Composition 68-76 

3. Chambers 77, 78 

4. Supervision — Costs 79-82 

IV. Imperial Insurance Office — State insurance offices — 

1. Jurisdiction — Seat 83, 84 

2. Composition 85-97 

3 . Senates 98-102 

4. Accounting bureau — Costs 103, 104 

5. State insurance offices 105-109 

Section Four. — Other general provisions — 

I. Authorities 110-114 

11./ Legal assistance 115-117 

III. Benefits 118-121 

IV. Medical treatment 122, 123 

V. Time limits 124-134 

VI. Notifications 135,136 

VIT. Fees and stamp taxes 137, 138 

" VIII. Prohibitions and penalties 139-148 

IX. Local wage rate 149-152 

X. Place of employment 153-156 

XI. Legislation of foreign countries 157, 158 

XII. General definitions — 

1. Employments subject to insurance 159 

2. Earnings 160 

3. Agriculture , 161 

4. Persons engaged in home-working industries 162 

5. German seagoing vessels 163 

6. Fiscal year 164 

Book Two. — Sickness insurance: 

Section One. — Scope of the insurance — 

T. Compulsory insurance. 165-175 

II. Voluntary insurance 176-178 

Section Two. — Benefits of the insurance — 

I. General provisions as to benefits 179-181 

II . Sickness benefits 182-194 



508 BULLETIN OF THE BUEEAU OF LABOR. 

Book Two. — Sickness insurance — Concluded. 

Section Two. — Benefits of the insurance — Concluded. Article. 

III. Maternity benefits 195-200 

IV. Funeral benefits 201-204 

V. Benefits to the family 205 

VI . General provisions 206-224 

Section Three. — Carriers of the insurance — 

I. Kinds of sick funds 225 

II. General local sick funds and rural sick funds 226-238 

III. Special local sick funds 239-244 

IV. Establishment sick funds and guild sick funds 245-257 

V. Controversies 258 

VI. Benefits of equal value , 259-263 

VII. Combination, separation, dissolution, and closing — 

1. Local and rural sick funds 264-269 

2. Establishment and guild sick funds 270-279 

3. Procedure 280-305 

Section Four. — Constitution — 

I. Membership — 

1. Beginning and termination 306-316 

2. Registration 317-319 

II. Constitution 320-326 

III. Administrative bodies of the funds — 

1. Organization of local and rural sick funds 327-337 

2. Organization of establishment and guild sick funds 338-341 

3. Duties 342-348 

IV. Employees and officials of the fund 349-362 

V. Administration of resources 363-367 

VI. Relation to physicians, dentists, hospitals, and pharmacies. . 368-376 

Section Five. — Supervision 377-379 

Section Six. — Raising of the funds — 

I. Contributions 380-392 

II. Payment of the contributions 393-405 

Section Seven. — Federations of funds. — Sections 406-415 

Section Eight. — Special occupations — 

I. General provisions 416 

II. Agriculture . 417-434 

III. Servants 435-440 

IV. Temporary employment 441-458 

V. Itinerant trades 459-465 

VI. Home-working industries 466-493 

VII- Apprentices 494 

Section Nine. — Miners' sick funds 495-502 

Section Ten. — Substitute funds — 

I. Authorization •: , 503-516 

II. Relation to sick funds '. . . 517-525 

Section Eleven. — Final pro^dsions and penal provisions — 

I. Final provisions . 526-528 

II. Penal provisions 529-536 

Book Three. — Accident insurance: 

Part One. — Industrial accident insurance — 

Section One. — Scope of the insurance 537-554 

Section Two. — Benefits of the insurance 555-622 



WOEKMEn's insurance code of JULY 19; 1911— GERMANY. 509 

Book Three. — Accident insurance — Continued. 

Part One. — Industrial accident insurance — Concluded. 
Section Three. — Cai'riers of the insurance — 

I. The accident associations and other carriers of the insur- Article, 

ance 623-629 

II. Composition of the accident associations 630-634 

III. Changes in the status of the accident associations 635-648 

Section Four. — Organization of the accident associations — 

I. Membership and the right to vote 649-652 

II. Registration of the establishments 653-656 

III. Register of establishments 657-663 

IV. Changes in the undertakers— Changes in the establish- 

ment and in its membership in the accident associa- 
tion 664-674 

V. Constitution 675-684 

VI. Administrative bodies of the accident association 685-689 

VII. Employees of associations 690-705 

VIII. Formation of the risk classes 706-712 

IX. Division and joint caiT^dng of the burden 713-716 

X. Administration of the assets. 717-721 

Section Five. — Super\dsion 722-725 

Section Six. — Payment of the compensation — Raising of the 
funds — 

I. Payments through the Post Office Department 726-730 

II. Raising of the funds 731-748 

III. Procedure in assessments and collections 749-776 

IV. Transferring amounts to the Post Office Department 777-782 

Section Seven . — Branch institutes — 

I. Branch institutes for the building trades — 

1. Establishment, scope, and organization 783-798 

2. Insurance at the expense of the undertakers — 

Premiums 799-824 

3. Insurance at the cost of communes 825-835 

II. Branch institutes for the keeping of riding animals and 

conveyances 836-842 

Section Eight. — ^Additional institutions 843-847 

Section Nine. — Accident prevention — Supervision — 

I. Regulations for accident prevention 848-873 

II. Supervision 874-889 

III. Special provisions for building operations and for the 

keeping of riding animals and conveyances 890. 891 

Section Ten. — Establishments and activities on account of pub- 
lic bodies 892-897 

Section Eleven. — Liability of undertakers and their represent- 
atives — 

I. Liability to injured persons and survivors 898-902 

II. Liability to accident associations, sick funds, etc 903-907 

Section Twelve. — Penal provisions 908-914 

Part Two. — Agricultural accident insurance — 

Section One. — Scope of the insurance 915-929 

Section Two. — Benefits of the insurance 930-955 

Section Three. — Carriers of the insurance — 

I. Accident associations and other carriers of the insurance. . 956-959 
II. Changes in the status of the accident association 960, 961 



510 BULLETIN OF THE BUEEAU OF LABOR. 

Book Three. — Accident insurance — Continued. 

Part Two. — Agricultural accident insurance — Concluded. 

Section Four. — Organization — Article. 

I. Membership and right to vote 962-966 

II. Registration of the establishments 967 

III. Changes in the undertakers — Changes in the establish- 

ment and in its membership in the accident associ- 
ation 968-970 

IV. Constitution 971-974 

V. Administrative bodies of the accident association 975-977 

VI. Employees of the association 978 

VII. Formation of the risk classes 979 

VIII. Division and joint carrying of the burden 980-982 

IX. Administration of the assets 983, 984 

Section Five. — Supervision 985-987 

Section Six. — Payment of the compensation — Raising of the 
funds — 

I. Payments through the Post Office Department 988 

II. Raising of the funds — 

1. General provisions. .-. 989 

2. Standard of the labor need and of the risk classes.. 990-1004 

3. Standard of the tax rate 1005-1009 

4. Other standards 1010 

5. General provisions 1011-1013 

III. Procedure in assessments and collections 1014-1027 

• IV. Transferring amounts to the Post Office Department 1028 

Section Seven. — Additional institutions 1029 

Section Eight. — Accident prevention — Supervision 1030-1032 

Section Nine. — Establishments of the Empire and of the States.. 1033 

Section Ten .—Regulation by State legislation 1034-1041 

Section Eleven. — Liability of undertakers and their represent- 
atives 1042 

Section Twelve. — Penal provisions. 104.3-1045 

Part Three. — Navigation accident association — 

Section One. — Scope of the insurance 1046-1064 

Section Two. — Benefits of the insurance 1065-1117 

Section Three. — Carriers of the insurance 1118-1122 

Section Four. — Organization — 

I. Membership and right to vote — Representatives 1123-1131 

II. Registration of establishments 1132 

III. Register of establishments 1133, 1134 

IV. Changes in the conditions of the establishment 1135-1141 

V. Constitution 1142-1145 

VI . Administrative bodies of the accident association ..... 1146 

VII. Employees of the association 1147 

VIII. Making the estimates — Risk tariff and special costs 1148-1156 

IX. Administration of the assets 1157 

Section Five. — Supervision 1158 

Section Six. — Payment of the compensation — Raising of the 
funds— 

I. Payments through the Post Office Department 1159-1161 

II. Raising of the funds 1162-1164 

III . Procedure in assessments and collections 1165-1184 

IV. Transferring amounts to the Post Office Department 1185 



workmen's I^^SUEANCE code of JULY 19, 1011 GEEMAXY. 51 1 

Book Three. — Accident insurance — Conehided. 

Part Three. — Navigation accident association — Concluded. 

Section Seven. — Branch institute for small-scale establishments Arti;le. 

engaged in navigation and in deep-sea fishing and coast fishing. 1186-1197 

Section Eight. — Additional institutions 1198 

Section Nine. — Accident prevention — Supervision — 

I. Regulations for the prevention of accidents 1199-1208 

II. Supervisian 1209-1217 

Section Ten. — Establishments of the Empire and of the States . . . 1218 
Section Eleven. — Liability of undertakers and their representa- 
tives 1219 

Section Twelve. — Penal provisions 1220-1225 

Book Four. — Invalidity and survivors* insurance: 
Section One. — Scope of the insurance — 

I. Compulsory insurance 122G-1242 

II. Voluntary insurance 1243, 1244 

III. Wage classes 1245-1249 

Section Two. — Benefits of the insurance — 

I . General provisions 1250-1254 

II. Invalidity pensions 1255, 1256 

III. Old-age x>cnsions 1257 

IV. Benefits of survivors 1258-1268 

V. Medical treatment 1269-1274 

VI . Payments in kind instead of pensions 1275-1277 

VII. Waiting term 1278,1279 

VIII. Expiration of the claim 1280-1283 

' IX. Computation of insurance benefits 1284-1297 

X. Cessation of the benefits 1298-1303 

XI. Withdrawal of the pension 1304-1310 

XII. Suspension of the pension— Capital sum settlements 1311-1318 

XIII. Special powers of the insurance institute 1319, 1320 

XIV. Relation to other claims 1321-1325 

Section Three. — Carriers of the insurance — 

A. Insurance institutes — 

I. External features — 

1. Establishment 1326-1328 

2. Local competence 1329-1331 

3. Changes in the districts 1332-1337 

II. Internal features — 

1. Constitution 1338-1341 

2. Directorate 1342-1350 

3. Committee 1351-1355 

4. Administration of the assets 1356-1358 

5. General provisions 1359 

B. S}>ecial institutes — 

1. General provisions 1360-1374 

2. Special institute of the navigation -accident association 1375-1380 

Section Four.— Supervision 1381, 1382 

Section Five. — Payment of the benefits — Raising of the funds — 

I. Payment through the Post Office Department 1383-1386 

II. Raising of the funds — 

1. General provisions ". 1387 

2. Size of the contributions 1388-1392 



512 BULLETIN OF THE BUEEAU OF LABOR. 

Book Four. — Invalidity and survivors' insurance — Concluded. 

Section Five. — Payment of the benefits — Raising of the funds— Concluded. 

II. Raising of the funds — Concluded. Article. 

3. Periods of military service and of sickness 1393, 1394 

4. General cost— Special cost 1395-1400 

5. Reinsurance federations 1401 

6. Liability for the obligations of the institute 1402 

7. Distribution and refunding of the insurance benefits — 

Transferring amounts to the Post Office Department. . . 1403-1410 
Section Six. — Procedure as to contributions — 

I. Stamps 1411,1412 

II. Receipt cards : 1413-1425 

III. Payment of contributions through the employer — Proof of 

military service and of sickness 1426-1438 

IV. Payment of the contributions by the insured persons 1439-1441 

V. Invalid contributions 1442-1445 

^ _ VI. Contributions paid in error 1446 

VII. Collecting the contributions 1447-1457 

VIIJ. Rounding off the amounts 1458 

IX. Controversies as to contributions 1459-1464 

X. Supervision 1465-1470 

XI. Special provisions 1471 

Section Seven. — Voluntary additional insurance 1472-1483 

Section Eight. — Final provisions and penal provisions — 

I. Sick funds 1484 

II. Special provisions for seamen 1485, 1486 

III. Penal provisions 1487-1500 

Book Five. — Relations of th« insurance carriers to each other and to other bodies: 

Section One. — Relations of the insurance carriers to each other — 

I. Sickness insurance and accident insurance 1501-1517 

II. Sickness insurance and invalidity and survivors' insurance.- 1518-1521 
III. Accident insurance and invalidity and survivors' insurance . 1522-1526 

Section Two. — Relations of the insurance carriers to other bodies 1527-1544 

Book Six. — Procedure: 

A. Determination of benefits — 

Section One. — Determination by the insurance carrier — 

I. Inauguration of the procedure. 1545-1550 

II. Sickness insurance 1551 

III. Accident insurance — 

1. Reports of accidents 1552-1558 

2. Investigation of accidents 1559-1567 

3. Decisions of insurance carriers — 

a. General provisions 1568-1582 

b. Decision 1583-1590 

c. Protest 1591-1599 

d. Special provisions for the protest against changes 

in permanent pensions •. 1600-1605 

e. Final decision 1606,1607 

f . Other provisions 1608-1612 

IV. Invalidity and siu-vivors' insiu-ance — 

1 . Submission of claims 1613-1616 

2. Preparation of the case by the local insurance oflSce. 1617-1629 

3. Decision of the insurance carriers 1630-1634 

4. Renewal of applications 1635 



WORKMEN ^S INSURANCE CODE OF JULY 19^ 1911 — GERMANY. 513 

Book Six. — Procedure — Concluded. 

A. Determination of benefits — Concluded. 

Section Two. — Determination by judgment procedure — 

I. Procedure before the local insurance office — Article. 

1. Competence of the local insurance office 1636-1640 

2. Disqualification and rejection of members of the 

judgment committee 1641-1 649 

3. Procedure up to the oral proceedings 1650-1659 

4. Oral proceedings 1660-1674 

II. Procedure before the superior insurance office 1675-1693 

III. Procedure before the Imperial Insurance Office (or the 

State insurance office) — 

1. Sickness, and invalidity and survivors' insurance.. 1694-1698 

2. Accident insurance 1699-1706 

3. General provisions ' 1707-1721 

IV. Reopening of the procedure — 

1. Grounds for contesting 1722-1726 

2. Competence 1727 

3. Course of the procedure 1728-1733 

4. Final provisions 1734 

Section Three. — Special kinds of procedure — 

I. Controversies of several insurance carriers in regard to 

the obligation to furnish compensation 1735-1738 

II. Procedure of distribution 1739-1742 

III. Determination of the validity of a claim to a widow's 

pension '. 1743 

IV. Contesting the final decisions of the insurance carrier. . . 1744 
Section Four. — Special provisions for the navigation accident 

insurance — 

I . General provisions 1745 

II. Reporting of accidents 1746-1752 

III. Investigation of accidents 1753-1766 

IV. Penal provisions. 1767 

V, Competence of the administrative bodies for determina- 
tions 1768, 1769 

VI. Controversies 1770 

B. Other judgment matters — 

I. General provisions • 1771 

II. Competence 1772-1775 

III. Other provisions 1776-1779 

C. Decision procedure — • 

Section One. — General provisions 1780-1790 

Section Two.— Appeals 1791-1796 

Section Three.— Further appeals 1797-1801 

D. Costs and fees — 

I. Costs of the procedure 1802, 1803 

II. Fees of lawyers 1804, 1805 

Introductory Law for the V/orkmen's Insurance Code: 

Section A — 

I . General provisions 1-6 

II. Insurance authorities 7-13 

III. Sickness insurance 14-42 

IV. Accident insurance 43-63 

V. Invalidity and survivors' insurance 64-84 

VI. Procedure 85-99 

VII. Final provision 100 

Section B 101-104 



514 BULLETIN OF THE BUREAU OF LABOR. 

THE WORKMEN'S INSURANCE CODE.^ 

BOOK ONE— GENERAL PROVISIONS. 

Section One — Scope op the Imperial Insurance. 

Article 1. 

Included in the imperial insurance (Reichsversicherung) are — 
The sickness insurance {Krankenversicherung); 
The accident insurance ( Unfallversicherung) ; 

The invalidity and survivors' insurance {Invaliden- und Hinterbliebenenversiche- 
rung) . 

Article 2, 
Of the special provisions — 

Articles 165 to 536 apply to the sickness insurance; 

Aitices 537 to 1225 apply to the accident insurance, of which articles 537 to 914 
apply to the industrial (gewerbliche) , articles 915 to 1045 to the agricultural 
(landwirtschaftliche), and articles 1046 to 1225 to the navigation accident insur- 
ance (See - Unfallversicherung) ; 
Articles 1226 to 1500 apply to the invalidity and suvivors' insurance. 

Section Two — Carriers of the Imperial Insurance. 

I. designation. 

Article 3. 

Paragraph 1. The following are the carriers {Tr'dger) of the imperial- insurance 
unless this law provides othermse: 

For the sickness insurance, the sick funds (Kranhenkassen) ; 

For the accident insurance, the employers' mutual trade associations (Berufsge- 

nossenschaften) ; ^ 
For the invalidity and survivors' insm'ance, the insurance institutes ( Versiche- 
rungsanstalten) . 
Par. 2. The provisions of articles 4 to 34 apply to these insurance caniers. 

II. legal competence. 

Article 4. 
The carriers of insurance may sue and be sued. 

III. administrative bodies. 
Article 5. 

Paragraph 1. Each carrier of insurance has a directorate. The latter represents 
it in and out of court. It has the status of a legal representative. 

Par. 2. Restrictions on the scope of this representation, not specified in the law, 
may be specified by the constitution, and have effect against third parties. The 
constitution may do this only in so far as this law permits. 

Par. 3. The constitution may specify, that also individual members of the directo- 
rate of the insurance carriers may represent them. 

Article 6. 

Paragraph 1. The directorate must notify its supervisory authority within one 
week of the result of each election and of each change in its composition. 

Par. 2. In so far as the directorate needs credentials, a certificate of the supervisory 
. officials as regards its composition and the extent of its power of representation suffices. 

1 Heichsversiciierungsordnung. (Number 3921.) Vom 19. Juli 1911. Reichs-Gesctzblatt, Aug. 1, 
1911, pp. 509 ff. 

2 In the folJowing translation the Berufsgenossenschaften have been designated as "accident associa- 
tions." 



WOEKMEX'S IXSUEAXCE CODE OF JULY 19;, 1911 GEEMAXY. 515 

Article 7. 
In urgent matters the directorate may take a vote by correspondence. 

Article 8. 

Paragraph 1. If decisions of the administrative bodies of the insurance carrier 
are contrary to the law or the constitution, the president of the directorate shall appeal 
from them to the supervisory authority. 

Par. 2. The appeal effects a stay. 

Article 9, 

In the administrative bodies theii' president has the right to vote, and if there is a 
tie he gives the casting vote. 

Article 10, 

The requii-ed nuniber of substitutes for the members shall be elected. 

Article 11. 
The sessions are not public. 

iv. honorary offices. 

Article 12. 

Paragraph 1. Only Germans who have attained their majority are eligible to the 
administrative bodies of the insurance earners. 
Par. 2. The following are not eligible: 

1. Persons who in consequence of criminal sentence have lost the right to hold 

public office, or who are being prosecuted at the time for a crime or misde- 
meanor which may cause the loss of this right, in case full proceedings have 
been begun against them; 

2. Persons who are limited in the disposition of their property as the result of a 

court decree. 

Article 13. 

Paragraph 1. ^^lloeve^ regularly employs at least one person subject to insurance, 
and this person is insured mth the insui-ance carrier, is eligible as a representative of 
the undertakers ( Unteriuhmer) ^ or of other employers. 

Par. 2. Managers of establishments having a power of attorney have the same status 
as undertakers or other employers; business managers, and establishment officials of 
participating employers (art. 332, par. 2), have the same status as employers in the 
election to administrative bodies of sick funds; the legal representatives of members 
of an accident association have the same status as undertakers in the elections to the 
administrative bodies of accident associations. 

Par. 3. Members of a public authority Avith supervisory powers over a carrier of 
insurance are not eligible. 

Article 14. 

Paragraph 1, Only persons insured in the insurance canier are eligible as repre- 
sentatives of the insured persons. 

Par. 2, In the sickness, invalidity, and survivoi-s' insurance, the insured persons 
will be accredited to the employers in the composition of the administrative bodies, 
if they employ regularly more than two persons subject to insurance. In the accident 
insurance insured members of the accident associations are accredited to the under- 
takers if they employ regularly at least one person subject to insurance. 

Article 15. 

Paragraph 1. The representatives of the undertakers and of other employers and of 
the insured persons are elected according to the principles of proportional representa- 
tion. 



1 The undertaker of an establishment is the one for whose account the estahlLshment is conducted. 
See sec. 633. 



516 BULLETIN OF THE BUEEAU OF LABOR. 

Par. 2. If the voting is restricted to nomination lists, the constitution determines 
the time limit for their submission; the election is secret, without affecting the nomi- 
nation lists. 

Article 16. 

Paragraph 1. The term of office is four years. 

Par. 2. After the expiration of this term, the elected persons remain in office until 
their successors take office. 

Par. 3. WTioever ceases to hold office may be reelected. 

Article 17. 

Paragraph 1. "Whoever is eligible as an undertaker or other employer may refuse 
election only under the following conditions: 

1. If he has completed his sixtieth year of age. 

2. If he has more than four legal children imder age; those of his children adopted 

by another will not be included herewith. 

3. If he is prevented by sickness or infirmity from administering the office as 

required by the regulations. 

4. If he has more than one guardianship or trusteeship. The guardianship or 

trusteeship of children of the same parents counts only as one such; two 
coguardianships are equal to one guardianship; one honorary office of the 
imperial insurance is equal to one coguardianship. 

5. If he employs servants only. 

Par. 2. After a minimum tenure of office of two years, reelection for the next term 
may be declined. 

Par. 3. The constitution may also specify other reasons for declining. 

Article 18. 

An undertaker or other employer declining an election without permissible cause 
may be punished by the president of the directorate by a fine up to 500 marks [$119]. 

Article 19. 

The president may fine a member of the directorate who fails to perform his duties 
not to exceed 50 marks [$11.90], and on repetition with a fine not to exceed 300 marks 
[$71.40]; if, however, the matter relates to a sick fund, then only up to 100 marks 
[$23.80]. He must remit the fine if a sufficient excuse is established afterwards. 

Article 20. 

The decision of a supervisory authority in appeals on cases referred to in articles 18 
and 19 is final. 

Article 21. 

Paragraph 1. The persons elected administer their offices without compensation 
as an honorary office. 

Par. 2. The insurance carrier refunds them their cash expenditures and allows to 
the representatives of the insured persons reimbursement for earnings lost or in its 
place a lump sum for loss of time. The constitution may also allow such a lump 
sum to the representatives of undertakers or other employers. 

Par. 3. The determination of the lump sums requires confirmation by the authority 
which approves the constitution. 

Par. 4. The honorary members of the directorate shall not at the same time be sala- 
ried officials of the insurance carrier. 

Article 22. 

The representatives of the insured persons must notify their emploj^er of each call to 
a meeting of the administrative bodies. If this is done within the required time, their 
absence from work does not give to the employer a sufficient reason to discontinue the 
relation of employer without observance of the regular period of notice of dismissal. 



workmen's insurance code of JULY 19, 1911 GERMANY. 517 

Article 23. 

Paragraph 1. The members of administrative bodies are liable for faithful busi- 
ness administration to the carriers of insurance in the same manner as guardians to 
their wards. The insurance carrier may relinquish claims on account of such liability 
only with the approval of the supervisory authority. The latter may enforce the lia- 
bility in the place of and at the expense of the carrier. 

Par. 2. A member who intentionally injures the insurance carrier shall be punished 
with confinement in jail. In addition the penalty can also include the loss of civic 
rights. If the member has committed an act to procure for himself or some other 
person a pecuniary advantage, in addition to the prison sentence a fine not to exceed 
3,000 marks [$714] may be imposed. 

Par. 3. During a discussion of those questions which affect the personal interests of 
a member or his relatives the member must abstain from taking part in the discussion 
and voting, and during the discussion must leave the room where the discussion takes 
place. 

Article 24. 

Paragraph 1. If facts become known concerning an elected person which prove 
his ineligibility or his untrustworthiness for the conduct of business, he shall by reso- 
lution be removed from office, either by the directorate, or, in the case of a sick fund, 
by the supervisory authority. 

Par. 2. Before the passing of such a resolution he shall be given an opportunity to 
make a statement. 

Par. 3. An appeal against the resolution is permissible to the Imperial Insurance 
Ofiice (decision senate) (Beschlusssenat), or, if the case relates to a sick fund, to the 
superior insurance office (decision chamber) (Beschlusskammer). 

Par. 4. An elected person will be relieved of his office on his own application by 
resolution of the directorate if during his term of office one of the grounds of refusal 
specified in article 17, paragraph 1, numbers 2 to 5, becomes effective. 

V. ASSETS. 

Article 25. 

Paragraph 1. The means of insurance carriers shall be used only for legally pre- 
scribed and permissible purposes. 

Par. 2. Revenues and expenditures shall be accounted for separately and the assets 
kept safe separately. 

Par. 3. The insurance carriers shall engage only in such business as is assigned to 
them by the law. 

Article 26. 

Paragraph 1. The assets shall be invested at interest like trust funds (arts, 1807 
and 1808 of the Civil Code) in so far as this law does not permit other investments. 

Par. 2. The assets may also be invested in securities in which the laws of the States 
permit the investment of trust funds, and also in such mortgages, payable to the holder, 
of German joint-stock mortgage banks, on which the imperial bank (Reichsbank) makes 
loans in Class I. . 

Article 27. 

Paragraph 1. The highest administrative authority may also approve the invest- 
ment of the assets in loans of communes or unions of communes in so far as this is not 
already permissible according to article 26, paragraph 1. 

Par. 2. The authority may limit the investment in certain classes of interest-bear- 
ing securities to a specified amount. 

■ Par. 3. If the district of the insurance carrier embraces territories or parts of terri- 
tories of several federal States, the approval of their highest administrative authority 
is required for such investments. 

Par. 4. The highest administrative authority may permit, with the right of with- 
drawing this permission, that temporarily available assets may be invested in another 
manner. 

Article 28. 

Paragraph 1. Arrears shall be collected in the same manner as communal taxes. 
The staying effect of objections to the obligation of payment is regulated according to 
the State laws. 

18544°— No. 96—12 12 



^18 BULLETIN OF THE BUREAU OF LABOR. 

Par. 2. The constitution of the insurance carrier may determine as far aR not 
already prescribed by the State laws, that the procedure of collection be preceded bv 
a procedure of warning, and that a fee may be collected for such procedure^of warnin/ 
This fee IS collected in the same manner as arrears. The deteriSnatlon of its amouli 
requires the approval of the supervisory authority ^ination or its amount 

.^=?if^V.^' A'''*^f ^ have preference of other claims according to article 61 number 1 
of the bankruptcy law (Konkursordnung) . ^ ' ^^^^®' ^» 

Article 29. 

wi-fbrfpirt^'^f ^- ^^^ ""^H^ to arrears lapses, as far as they have not been fraudulently 
Pa. 9' Thi .1 ^^T ^^^f *5^ f^Pir^ationof the calendar year when they are due^ 
Par 2 The claim for refund of contributions lapses in six months after the exDira 

vi. supervision. 
Article 30. 

andt^tulrar^Xe^^id'^' supervisory authority consists in seeing that the law 

Article 31. 

Paragraph 1. The supervisory authority may examine at any time the business 
and accounting management of the insurance carrier ousmess 

^?^^-?- 'S^ f embers of its administrative bodies, its district agents ( Fer^mums- 
manner) officials, and employees must produce, on demand, to the superWy 
authority or its representatives all bool^s, bills, vouchers, and records, and also docu^ 
ments, securities and assets m their custody, and give all information demanded in 
the execution of the right of supervision. ^^xiueu lu 

Par. 3. The supervisory authority may require the persons specified in paragraph 
2 under reservation of article 985, paragraph 2, to observe the law and the^conftftu- 
tion, by fines not to exceed 1,000 marks [$238]. 

Article 32. 

, The supervisory authority may demand that the administrative bodies be called 
mto session; and if such demand is not complied with, may themselves call meetings 
and take charge of the proceedings. ^ 

Article 33. 

The supervisory authority decides, without derogation of the rights of third parties 
and as;tar as the law does not prescribe otherwise, in disputes as to the rights and 
obligations of the administrative bodies, *as to the interpretation of the constitution 
and as to the validity of elections. 

Article 34. 

• P^^^^.^R^i^H 1 Subject to the supervision are also convalescent homes, medical 
institutions, and sanatoria {Genesungsheime, Eeil- und Pflegeanstalten) created and 
maintained by the insurance carrier. 

Par. 2 The supervisory authority may in its inspections call to its assistance 
representatives of employers and of the insured persons. 

Section Three. — Insurance Authorities. 

I. general provisions. 

Article 35. 

Paragraph 1._ The public authorities of the imperial insurance are— 
The local insurance offices (Versicherungsamter) (arts. 36 to 60); 
The superior insurance offices (Oberversicherungsdmter) (arts. 61 to 82)- 
The Imperial Insurance Office (Reichsversicherungsamt) and the State insur- 
ance offices {Landsversicherungsdmter) (arts. 83 to 109). 



workmen's insurance code of JULY 19, 1911 GERMANY. 519 

Par. 2. As far as this law does not regulate the business management and the pro- 
cedure of the insurance authorities, it shall be done, with reservation of article 109, 
paragraph 1, by imperial decree with the approval of the Federal Council. 

II. LOCAL INSURANCE OFFICES. 

1. Establishment. 
Article 36. 

Paragraph 1. In each inferior administrative authority there shall be established 
a section for workmen's insurance (local insurance office) . The highest administrative 
authority may specify that there shall be established for the districts of several inferior 
administrative authorities a joint local insurance office. 

Par. 2. The State governments of several federal States may agree to establish for 
their territories or parts thereof a joint local insurance office in an inferior administra- 
tive authority. 

Article 37. 

Paragraph 1. The local insurance offices take cognizance of the business of the 
imperial insurance according to the provisions of this law, and impart information in 
affairs pertaining to the imperial insurance. 

Par. 2. They may support the insurance carriers in the latters' affairs according to 
the provisions of this law. 

Par. 3. The State government may assign to the local insurance offices other duties 
pertaining to miners' insurance. 

Article 38. 

In federal States in which" the composition of the State authorities does not permit 
of the establishment of local insurance offices at the inferior administrative authorities 
and where there exists only a superior insurance office, the local insurance offices can 
also be established as independent authorities. The highest administrative authority 
shall specify the details herewith. 

2. Composition. 

Article 39. 

Paragraph 1. The director of the inferior administrative authority is the president 
of the local insurance office. One or more permanent substitutes of the president are 
to be appointed. Any person qualified by education and experience in workmen's 
insurance affairs may be appointed a substitute. 

Par. 2. The appointment requires the approval of the superior insurance office, in 
so far as the permanent substitutes are not appointed according to State law in the 
same manner as the higher administrative officials. 

Par. 3. If the local insurance office is created in a communal authority, the sub- 
stitutes are appointed by the president of the union of communes whose district 
contains that of the local insurance office. "WTiere the State law prescribes a con- 
firmation for the election of higher communal officials, it is also applicable to the 
appointment of substitutes for the president of the local insurance office. 

Article 40. 

Paragraph 1. In the cases specified by the law there shall be called in repre- 
sentatives of the insurance ( Versicherungsvertreter) as associates (Beisitzer) of the local 
insurance office. 

Par. 2. They shall be selected one-half from the employers and one-half from the 
insured persons. 

Article 41. 

Paragraph 1. Their total number must be at least 12; with the approval of the 
superior insurance office, the number may be augmented by the local insurance office, 
or by the former after a hearing of the local insurance office. 

Par. 2. A representative of the insurance shall not also be a salaried official of the 
local insurance office, or a representative of the insurance at another local insurance 
office, or an associate in a superior insurance office, or a nonpermanent member of the 
imperial or of a State insurance office. 



520 BULLETIN OF THE BUREAU OF LABOR. 

Article 42. 

Paragraph 1. Representatives of the insurance are elected by the members of 
the directorates of those sick funds which have at least 50 members in the district of 
the local insurance office. 

Par. 2. The members of the directorates of the three groups of funds mentioned 
herewith participate in the election in so far as they have at least 50 members in the 
district of the local insurance office; of the substitute funds, and funds located out- 
side of the local insurance office, moreover only if they notify in due time the person 
in charge of the election of their participation and prove the number of their members 
in this district; these three groups of funds are — 

1. The miners' sick funds; 

2. The substitute sick funds; 

3. The seamen's funds, and other associations of seamen for .the preservation of 

their rights, approved by the authorities. 
Par, 3. In place of the representatives of the insured persons in the directorate, the 
votes shall be cast by — 

In the case of the miners' sick funds, the elders of the miners' sick funds competent 

for the district of the local insurance office; 
In the case of the substitute funds which have local administrative offices, the 
business managers of the local administrations competent for the district of the 
local insurance office. 

Article 43. 

The number of votes of a fund depends on its 'number of members in the district of 
the local insurance office, and shall be determined by the latter before each election. 
The number of votes shall be evenly divided among the members of the directorates 
and among the persons entitled to vote in their place according to article 42, para- 
graph 3. 

Article 44. 

Paragraph 1. In the directorates of the funds the members who are employers take 
part only in the election of representatives of the employers, the members who are 
insured persons in the election of representatives of the insured persons. 

Par. 2. Directorates which contain no employers, participate only in the election 
of the representatives of the insured persons. 

Par. 3, In the case of funds of the kind designated in article 42, paragraph 2, which 
have no representatives of the insured persons in the directorate, the voting is done 
by other workmen's representatives who are in the fund. 

Par. 4. Whatever relates to the directorates is also applicable to the persons entitled 
to vote in their place according to article 42, paragraph 3, 

Article 45. 

Paragraph 1. The voting is done by written ballot and on the principle of pro- 
portional representation. The highest administrative authority decrees the election 
regulations. 

Par, 2. The president of the local insurance office shall conduct the election. 
Par. 3. Election disputes are decided finally by the superior insurance office. 

Article 46. 

Paragraph 1. For the representatives of the insurance, substitutes are specified in 
the same manner according to need. 

Par. 2, Substitutes replace representatives of the insurance who leave before the 
expiration of their terms. 

Article 47, 

Paragraph 1, Only men who reside or have the seat of their establishment or are 
employed in the district of the local insurance office, and who are not ineligible 
according to article 12, are eligible. 

Par. 2, Only insured persons, their employers, and the latters' managers of estab- 
lishments with power of attorney are eligible. Insured persons are accredited to the 
employers, if they regularly employ more than two persona subject to insurance. 

Par. 3. In the case of local insurance offices on the seacoast, navigators of practical 
experience who are not shipowners, or managers of ship-owning establishments 
(shipping agents, arts. 492 to 499 of the Commercial Code), or who do not hold a power 
of attorney, may also be elected as representatives of the insured persons. 



WOEKMEN^S INSURANCE CODE OF JULY 19, 1911 GERMANY. 521 

Article 48. 

At least one-half of the representatives of the insurance must be participants in the 
accident insurance. 

Article 49. 

Paragraph 1. At least one-third of the representatives of the insurance shall 
reside or be employed at the seat of the local insurance office itself, or not more than 
10 kilometers [6.21 miles] distant from it. 

Par. 2. The principal branches of industry, especially agriculture, and the dif- 
ferent parts of the district shall be considered in the election. 

Par. 3. The highest administrative authority may decree special or exceptional 
provisions herewith. 

Article 50. 

Paragraph 1. Articles 16, 17, and 22 are correspondingly applicable; but the 
local insurance office determines the admissibility of other reasons for declining. 

Par. 2. As long and in so far as no election takes place, or the persons elected refuse 
to perform their duties, the president of the local insurance office appoints represent- 
atives from the number of eligible persons. 

Article 51. 

Paragraph 1. Whoever declines the election or appointment without a permis- 
sible reason, may be punished by the president of the local insurance office with a 
fine not to exceed 50 marks [$11.90]. 

Par.' 2. The local insurance office may release a representative from his office if a 
sufficient reason exists. 

Par. 3. On appeal the superior insurance office (decision chamber) decides finally. 

Article 52. 

Paragraph 1. If facts become known concerning a representative of the insurance 
which prove his ineligibility or which show that he is guilty of malfeasance of his 
office, he may be removed from his office by the president. 

Par. 2. On appeal the superior insurance office (decision chamber) decides finally. 

Article 53. 

Paragraph 1. The president of the local insurance office obligates the represen- 
tatives of the insurance to the faithful discharge of their duties. 

Par. 2. The president may punish a representative who fails to perform his duties 
with a fine not to exceed 30 marks [$7.14] and on repetition not to exceed 100 marks 
[$23.80]. He must remit the fine if afterwards a sufficient excuse is established. 

Par. 3. On appeal the Imperial Insurance Office ('decision chamber) decides finally. 

Article 54. 

Paragraph 1. The representatives administer their office without compensation as 
an honorary office. 

Par. 2. The local insurance office shall reimburse them for their cash expenditures. 

Par. 3. In addition it shall grant to the representatives of the insured persons 
reimbursement for lost earnings, or in place thereof a lump sum for their loss of time. 
It may also allow such a lump sum to the representatives of the employers. The 
lump sums require the approval of the superior insurance office (decision chamber). 

Article 55. 

The local insurance office may assign specified official duties to the representatives 
as its district agents. 

3. Committees. 

Article 56. 

Paragraph 1. Each local insurance office creates one or more judgment com- 
mittees for matters which this law assigns to the judgment procedure (S pruchver/ahren) . 

Par. 2. The judgment committee (Spruchausschuss) consists of the president of the 
local insurance office and of one representatiye for the employers and one for the 
insured persons. 



622 BULLETIN OF THE BUREAU OF LABOR. 

Article 57. 

Paragraph 1. Each local insurance office creates a decision committee (Beschluss- 
ausschuss) for matters which this law assigns to the decision procedure {Beschluss- 
verfahren) . 

Par. 2. The decision committee consists of the president of the local insurance 
office and of two representatives of the insurance. Of these, the representatives of 
the employers and of the insured persons each elect one from among themselves, 
together with at least one substitute; the elections of the two parties shall be separate, 
shall be by simple majority of votes, and the term of office shall be four years. 

Article 58. 

The highest administrative authority can specify how far the local insurance office 
may call in for the decision procedure technical government and communal officials 
of its district as advisors (Beirdte) with consultative vote. 

4. Costs. 

Article 59. 

Paragraph 1. The federal State defrays all costs of the local insurance office. If 
the local insurance office is created in a communal authority, they are defrayed by the 
union of communes whose district embraces that of the local insurance office. The 
highest administrative authority determines the division of costs, if there is- a joint 
local insurance office created for the districts of several inferior administrative author- 
ities. 

Par. 2. With the exception of the allowances of the insurance representatives, the 
insurance carriers have to defray the cash expenditures originating from judicial mat- 
ters (arts. 1591 to 1674) so far as the cash expenditures are not to be defrayed according 
to paragraph 3. 

Par. 3, Fines, according to article 51, paragraph 1, article 53, paragraph 2, article 
1577, paragraph 1, article 1617, paragraph 1, article 1626, paragraph 1, article 1652, 
paragraph 3, and article 1664, paragraph 1, as well as specially imposed costs of pro- 
cedure (art. 1802) and contributions according to article 60, accrue to the treasury of 
the federal State or of the union of communes (par. 1). 

Article 60. 

Paragraph 1. In case of the assignment of duties connected with the miners' 
insurance, to a local insurance office according to article 37, paragraph 3, the miners' 
associations or miners' funds affected must pay an appropriate contribution toward 
the costs of the local insurance office. 

Par. 2. The superior insurance office determines the contributions; an appeal 
against the determination to the highest administrative authority is permissible. 

III. SUPERIOR insurance OFFICES. 

1. Establishment. 
Article 61. 

Paragraph 1. According to the provisions of this law, the superior insurance offices 
take cognizance of the business of the imperial insurance as higher judicial, decision, 
and supervisory authorities. 

Par. 2. The State government may assign to them also other duties connected with 
the miners' insurance. 

Article 62. 

Paragraph 1. The superior insurance office is as a rule established for the district 
of a higher administrative authority. 

Par. 2. The highest administrative authority may delimit the district differently. 

Par. 3. The State -governments of .several federal States may establish for their 
territories or parts thereof a joint superior insurance office. 



workmen's insurance code of JULY 19, 1911 GERMANY. 623 

Article 63. 

Paragraph 1. The highest administrative authority may also establish superior 
insurance oflSces for — 

1. The administration of establishments and service establishments of the Empire 

or of the federal States which have their own establishment sick funds; 

2. Groups of establishments, for whose employees special institutes {Sonderan- 

stalten) provide the invalidity and survivors' insurance; 

3. Groups of establishments belonging to miners' associations or miners' sick funds. 
Par. 2. For these special superior insurance offices article 62, paragraph 1, and 

articles 72, 73, and 80 are not applicable. In other respects the provisions relating 
to superior insurance offices are applicable to them as far as articles 70, 75, and 81 
do not prescribe otherwise. 

Par. 3. The highest administrative authority specifies their competence. 

Article 64. 

The highest administrative authority may attach the superior insurance offices to 
superior imperial of State authorities, or may establish them as independent State 
authorities. 

Article 65. 

Paragraph 1. The highest administrative authority specifies the seat of the supe- 
rior insurance office. 

Par. 2. For a joint superior insurance office the approval of the State governments 
affected is required. 

Article 66. 

The highest administrative authority communicates to the Imperial Insurance Office 
for publication the seat and district of all superior insurance offices of their territory 
within one month from their establishment or change. 

Article 67. 

If a superior insurance office is attached to a superior imperial or State authority, 
the director of the latter is at the same time the president of both. A director of the 
superior insurance office is appointed as his permanent substitute. 

2. Composition. 

Article 68. 

The superior insurance office is composed of members and of associates. 

Article 69. 

Paragraph 1. The superior insurance office shall appoint, at the same time, in 
addition to the director at least one member as his substitute. 

Par. 2. At least one substitute shall be appointed for each member. 

Par. 3. The members shall be appointed to the principal position or for the term 
of the principal position from the number of public officials, the director either for 
life or according to State law, without recall. 

Article 70. 

The highest administrative authorities may specify that other official duties shall 
be assigned to the director, and that the other members, as well as in the case of 
special superior insurance offices the director, exercise their office as a subsidiary 
occupation. 

Article 71. 

Paragraph 1. The associates shall be elected one-half from the employers and 
one-half from the insured persons. 

Par. 2. The number of associates is 40; it may be increased or decreased by the 
highest administrative authority. 

Par. 3. An associate may not at the same time be a nonpermanent member of the 
Imperial Insurance Office or of a State insurance office. 



624 BULLETIN OF THE BUREAU OF LABOR. 

Article 72. 

Paragraph 1. The industrial accident associations, the navigation accident asso- 
ciation, and the executive authorities specify for each superior insurance office an 
accident association or executive authority to represent their right to vote (art. 73, 
par. 1). If there is no agreement, the Imperial Insurance Office shall specify the 
particulars. 

Par. 2. The names of these representative associations and representative execu- 
tive authorities are to be communicated to the Imperial Insurance Office and to be 
published by it. 

Article 73. 

Paragraph 1. The associates from the employers shall be elected one-half by the 
employer members in the committee of the competent insurance institute and one- 
half by the directorates of the competent agricultural associations and of the repre- 
sentative accident association; if representative executive authorities have been 
specified, they shall vote in place of the directorate of the representative association. 
The Imperial Insurance Office decrees the election regulations. . 

Par. 2. The associates from the insured persons are elected by the representatives 
of the insured persons of the local insurance offices of the district of the superior insur- 
ance office according to the principle of proportional representation. The number of 
votes of the representatives of the insured persons is determined by the superior 
insurance office according to the number of sick-fund members of the district of their 
local insurance office (art. 43). The highest administrative authority decrees the 
election regulations. 

Article 74. 

Paragraph 1. The voting is done by written ballot. The director of the superior 
insurance office conducts the election. 

Par. 2. Election disputes are decided finally by the superior insurance office 
(decision chamber). 

Article 75. 

Paragraph 1. The employer associates for a special superior insurance office are 
elected by the employer members of the directorate either of the establishment sick 
fund, or of the special institute, or of the miners' associations or miners' funds; if there 
are no representatives of the employers in a directorate, the voting is done by the 
representatives of employers who belong to another administrative body. 

Par. 2. The associates from the insured persons are elected according to the principles 
of proportional representation by the committee members of insured persons, either 
of the establishment sick fund or the special institute, or by the elders of the miners' 
fund; as far as miners' associations or miners' funds are admitted as special institutes 
or belong to a special institute, the voting is also done by the elders of the miners' 
funds; if a special institute has no committee, the voting is done by the representa- 
tives of the insured who belong to another administrative body. 

Par. 3. The highest administrative authority specifies the particulars. 

Article 76. 

Articles 46 to 48, article 49, paragraphs 2 and 3, and articles 50 to 54 are correspond- 
ingly applicable for the election, rights, and duties of associates and their substitutes. 
Appeals (art. 51, par. 3, art. 52, par. 2, and art. 53, par. 3) are to be directed to the 
highest administrative authority; fines (art. 51, par. 1, and art. 53, par. 2) may be 
imposed not to exceed 300 marks [$71.40]. 

3. Chambers (Kammern). 

Article 77. 

Paragraph 1. Each superior insurance office creates one or more judgment cham- 
bers (Spruchkammern) for matters assigned by this law to judgment procedure 
(Spruchverfahren). 

Par. 2. The judgment chamber is composed of a member of the superior office, as 
president, and of two associates of the employers and of two of the insured persons. 



WORKMEN ^S INSURANCE CODE OF JULY 19, 1911 GERMANY. 525 

Article 78. 

Paragraph 1. Each superior insurance office creates one or more decision cham- 
bers (Beschlusslcammern) for matters which this law assigns to the decision procedure 
(Beschlussverfahren) . 

Par. 2. The decision chamber is composed of the president of the superior insurance 
office, of a second member, and of two associates. Of these, the associates of the em- 
ployers and of the insured persons elect one each, and also at least one substitute each, 
from their midst, and the election shall be according to a simple majority of votes, 
for a term of four years. 

Par. 3. In case of a tie, the president casts the deciding vote. 

4. Supervi ion — Cots. 
Article 79. 

Paragraph 1. The highest administrative authority exercises the supervision over 
the superior insurance office. 

Par. 2. They assign to it the necessary employees and provide its business rooms. 

Par. 3. The bureau, clerical, and subordinate employees have the rights and 
duties of imperial or State officials, except when employed as substitutes, or tem- 
porarily, or in preparatory work, the State government determines the particulars 
herewith; 

Par. 4. The president obligates them to the conscientious discharge of their official 
duties, so far as they are not already obligated by an oath of office. 

Article 80. 

Paragraph 1. The federal State defrays all costs of the superior insurance office. 

Par. 2. The insurance carriers have to pay a lump sum for each case under adjudi- 
cation in which they are concerned; if in a case costs are to be defrayed according to 
paragraph 4, the lump sum is correspondingly reduced. 

Par. 3. The lump sums shall be determined by the Federal Council uniformly for 
the Empire for each branch of the workmen's insurance, and shall be revised every 
four years. They shall cover half of the costs of the superior insurance offices without 
the allowances of members and their substitutes and without the fees (art. 1803). 

Par. 4. The fees according to article 1803, the fines according to articles 76 and 
1679, as well as the specially imposed costs of procedure (art. 1802), and the contri- 
butions according to article 82, accrue to the treasury of the federal State. 

Article 81. 

Paragraph 1. All costs of special superior insurance offices created for establish- 
ments of the Empire or of a State are to be defrayed by the administrations of the 
establishments. The receipts (art. 80, par. 4) accrue to the latter. 

Par, 2. All costs of the other special superior insurance offices are to be refunded 
after deduction of the receipts (art. 80, par. 4) by the insurance carriers participating 
to the federal State. 

Article 82. 

If, according to article 61, paragraph 2, matters of the miners' insurance are assigned 
to a superior insurance office, then the miners' associations {Knappschaftsvereine) and 
miners' funds (Knappschaftskassen) affected have to make appropriate contribu- 
tions to its costs. The highest administrative authority determines the contributions. 

IV. imperial insurance office — STATE INSURANCE OFFICES. 

1. Jurv diction— Seat. 
Article 83. 

Paragraph 1. The Imperial Insurance Office, according to the provisions of this 
law, takes cognizance of the affairs of the imperial insurance as the highest authority 
on judicial, decision, and supervisory matters. 

Par. 2. It has its seat in Berlin. 

Article 84. 

Its decisions are final as far as the law does not provide otherwise. 



526 BULLETIN OF THE BUREAU OF LABOR. 

2. CompoAtion. 

Article 85.- 

The Imperial Insurance Office is composed of permanent and nonpermanent 
members. 

Article 86. 

Paragraph 1. The Emperor appoints the president and the other permanent 
members for life on proposal of the Federal Council. 

Par. 2. From the permanent members the Emperor appoints the directors and the 
presidents of senates. 

Par. 3. The imperial chancellor appoints the other members. 

Article 87. 

Paragraph 1. The Imperial Insurance Office has 32 nonpermanent members. 
The Federal Council elects 8 of these, of which at least 6 must be from its member- 
ship; 12 are elected as representatives of the employers and 12 as representatives of 
the insured persons. 

Par. 2. According to need, substitutes shall be elected for the employers and the 
insured persons in the same manner. If members retire before the expiration of their 
term of office, the substitutes take their place in the order in which they were elected. 

Article 88. 

Paragraph 1. The employers and the insured persons are elected separately by 
written ballot under the direction of the Imperial Insurance Office, the insured per- 
sons according to the principles of proportional representation, the employers accord- 
ing to a simple majority of votes, in which a tie shall be decided by lot. 

Par. 2. The proportion of votes of each electing body is determined by the Federal 
Council according to the number of their insured persons. It may specify the man- 
ner of electing by districts. 

Par. 3. The Imperial Insurance Office publishes the result of the election. 

Article 89. 

Of the 12 employers, 6 are elected by the employer members belonging to the com- 
mittees of insurance institutes and of the corresponding representations of the special 
institutes, as follows: 

Four from the field of the industrial accident insurance; 

Two from that of the agricultural accident insurance. 

Article 90. 

The other 6 employers shall be elected by the directorates of the accident associa- 
tions and by the executive authorities, and, furthermore, from the field of each of 
them, as follows: 

Four from the industrial associations and executive authorities, one of whom 

shall be from the navigation accident association; 
Two from the agricultural accident associations and executive authorities. 

Article 91. 

The 12 insured persons shall be elected by the insured persons who are asso- 
ciates of the superior insurance offices, as follows: 

Eight from the field of the industrial and navigation accident insurance, of whom 

one shall be from the field of the navigation accident insurance; 
Foui^ from the field of the agricultural accident insurance. 

Article 92. 

Only men are eligible who are not excluded according to article 12. 

Article 93. 

Paragraph 1. The following are eligible as employers: The members of acci- 
dent associations who are entitled to vote, their legal representatives, the managers 
of their establishments with power of attorney, and the officials of establishments for 
which an executive authority has been appointed. 



WOKKMElSr's INSURANCE CODE OF JULY 19, 1911 GERMANY. 527 

Par. 2. Moreover, there are eligible, according to article 89, employers who are mem- 
bers of the committee of an insurance institute or of the corresponding representa- 
tion of a special institute. 

Article 94. 

Eligible as insured persons are persons insured against accident according to this 
law; furthermore, insured persons who are members of the committee of an insurance 
institute, even if they are not insured against accident; and for the field of the navi- 
gation accident insurance, navigators of practical experience who are not shipown- 
ers, managers of shipowning establishments, or authorized representatives thereof. 

Article 95. 

Article 49, paragraph 2, and articles 50 to 52, article 53, paragraphs 2 and 3, are 
correspondingly applicable; but the Imperial Insurance Ofl&ce (decision senate), 
however, is competent for punishment (art. 51, par. 1, and art. 53, par. 2) and removal 
from office (art. 52). Fines (art. 51, par. 1, and art. 53, par. 2) may be imposed not 
to exceed 500 marks ($119). 

Article 96. 

Paragraph 1. The nonpermanent members receive a yearly allowance for their 
participation in the work and sessions of the Imperial Insurance Office, and, in so far 
as they reside outside of Berlin, refund of traveling expenses coming and returning, 
according to the rates in force for advisory councilors ( Vortragende Rate) of the high- 
est imperial authorities. 

Par. 2. Substitutes receive the same refund of traveling expenses and a per 
diem allowance o£ 18 marks ($4.28). 

Article 97. 

The imperial chancellor obligates the nonpermanent members elected by the 
Federal Council, the president of the Imperial Insurance Office obligates the other mem- 
bers and their substitutes, before they enter on their duties, to the faithful discharge 
of their duties. 

3. Senates. 

Article 98. 

Paragraph 1. The Imperial Insurance Office forms judgment senates {Spruch- 
senate) for matters which this law assigns to judgment procedure. 

Par. 2. The judgment senate is composed of a president, a nonpermanent member 
elected by the Federal Council, a permanent member, two officials of the judiciary 
called in for this purpose, an employer, and an insured person. A permanent member 
may take the place of the member elected by the Federal Council. 

Article 99. 

Paragraph 1. The president, a director, or a president of the senate presides in 
the judgment senate. The imperial chancellor may intrust another permanent 
member with the chairmanship. 

Par. 2. The imperial chancellor summons the officials of the judiciary to the 
judgment senate. 

Article 100. 

Paragraph 1. The Imperial Insurance Office creates decision senates (Beschluss- 
senate) for matters which this law assigns to the decision procedure. 

Par. 2. The decision senate consists of the president, or of one director, or of a sen- 
ate president ag presiding officer, and of the following: A nonpermanent member 
elected by the Federal Council, a permanent member, an employer, and an insured 
person. A permanent member may take the place of the member elected by the 
Federal Council. 

Article 101. 

Paragraph 1. The Imperial Insurance Office creates the great senate {Grossen 
Senat) for the duties which this law assigns to that body. 

Par. 2. With reservation of enlargement according to article 1718, paragraph 2, 
the great senate consists of the president or his representative, two members elected 
by the Federal Council, two permanent members, two officials of the judiciary, two 
employers, and two insured persons. 



528 BULLETIN OF THE BUEEAU OF LABOR. 

Article 102. 

Paragraph 1. If all the members of the Imperial Insurance Office elected by the 
Federal Council are prevented from serving, permanent members shall be called in 
to take their place. 

Par. 2. The other members of the great senate and at least two substitutes for 
each shall be designated in advance for one fiscal year according to detailed provision 
of imperial decree (art. 35, par. 2). 01 these there shall be designated two permanent 
members and two officials of the judiciary and their substitutes for each of the follow- 
ing subjects: 

Sickness insurance ; 

Accident insurance; 

Invalidity, and survivors' insurance. 

4. Accounting bureau — Costs. 
Article 103. 

Paragraph 1. An accounting bureau (Rechnungstelle) is to be established in the 
Imperial Insurance Office. 

Par. 2. It executes the work assigned to it by this law. It supports the Imperial 
Insurance Office in its accounting and technical insurance work. The Imperial Insur- 
ance Office specifies the nature of the information to be furnished to it for this purpose 
by the insurance carriers. 

Article 104. 

Paragraph 1. The Empire bears the costs of the Imperial Insurance Office, inclu- 
sive of the costs of procedure. 

Par. 2. The fines according to articles 95 and 1698, paragraph 1, article 1701, para- 
graph 1, as also the specifically imposed costs of procedure (art. 1802), accrue to the 
imperial treasury. 

5. State insurance offices. 

Article 105. 

Paragraph 1. A State insurance office which was established before this law, for 
the territory of a federal State, may remain in existence as long as there are under its 
jurisdiction at least four superior insurance offices. 

Par. 2. As far as this law so prescribes, the State insurance office takes the place 
of the Imperial Insurance Office for this territory. 

Par. 3. The costs of the State insurance office are borne by the federal State. 

Article 106. 

Paragraph 1. The State insurance office consists of permanent and nonpermanent 
members. 

Par. 2. The State government appoints the permanent members. They are to be 
appointed either for life or according to the State law, without recall as far as their 
appointment is for the actual office. 

Par. 3. At least eight representatives of the employers and eight representatives 
of the insured persons shall be elected under the direction of the State insurance 
office, by written ballot, as nonpermanent members. One-half of them shall come 
from the agricultural and the other half from the industrial accident insurance. 

Article 107. 

Paragraph 1. Article 87, paragraph 2, and articles 88 to 97, are correspondingly 
applicable for the election, rights, and duties of the members, in so far as article 
106, paragraph 3, or the following pages do not provide otherwise. 

Par. 2. The highest administrative authority takes the place of the Federal Council 
and of the imperial chancellor. 
Par. 3. The employers are elected by — 

1. The employer members in the committees of the insurance institutes and in the 
corresponding representative bodies of special institutes, created for or 
embracing the territory of the federal State. 
' 2. The directorates of the accident associations and the executive authorities 
embracing establishments with their seat in the territory of the federal State. 
Where this territory is identical with the district of one or more sections, the 
section directorates elect in place of the association directorates. 



WOEKMEN S INSURANCE CODE OF JULY 19, 1911 GERMANY. 529 

Par. 4. The insured persons are elected by the insured persons who are associates 
of those superior insurance offices which are created for or embrace the territory of the 
federal State. 

Par. 5. The State government determines the proportion of votes according to the 
number of insured persons. 

Article 108. 

Paragraph 1. The removal of a nonpermanent member is decided upon by the 
State insurance office. 

Par. 2. Articles 98 to 100, and 104, paragraph 2, are correspondingly applicable for 
the State insurance office; the highest administrative authority takes the place of the 
Federal Council and of the imperial chancellor; the treasury of the federal State takes 
the place of the imperial treasury. 

Article 109. 

Paragraph 1. As far as this law does not regulate the business management and the 
procedure of the State insurance office, it is done by the State government. 

Par. 2. The State government specifies the allowances to nonpermanent members. 

Section Four. — Other General Provisions. 

I. authorities. 

Article 110. 

The highest administrative authority may transfer to other authorities some of the 
duties and rights assigned to them by this law. 

Article 111. 

Paragraph 1. The highest administrative authority specifies — 

1. Which State authority and which authorities and representative bodies of 

unions of communes and of communes are competent for the duties which 
this law assigns to the superior and inferior administrative authorities, to the 
local police authorities, to the communal authorities, to the unions of com- 
munes, and to the communes, as well as their authorities and representatives. 

2. Which unions are to be considered as unions of communes; a single commune 

is only then considered a union of communes in the meaning of the law if so 
specified by the highest administrative authority. 

3. Whether and which local business of the imperial insurance shall be transacted 

by communal authorities in place of the local insurance offices. 
Par. 2. The specifications shall be published in the Reichsanzeiger. 

Article 112. 

If at least half the members of the administrative bodies are composed of repre- 
sentatives of the insurance elected by secret ballot, the highest administrative author- 
ity may assign duties of the local insurance office to administrative bodies of — 
Miners' associations or of miners' funds. 

Establishment sick funds for establishment administrations and service estab- 
lishments of the Empire and of the federal States. 
Special institutes of the Empire and federal States. 
Judicial duties may not be transferred. 

Article 113. 

Paragraph 1. If an insurance authority, an insurance carrier, or an establishment 
embraces territories of several federal States, the State government or the highest ad- 
ministrative authority of the federal State of its seat, takes cognizance of the powers 
which this law assigns to the State government or to the highest administrative author- 
ity as far as is not otherwise prescribed. 

Par. 2. If the State governments or the highest administrative authorities do not 
agree, where this law prescribes their cooperation, the Federal Council decides between 
the State governments, and the imperial chancellor between the administrative 
authorities. The same is applicable if they do not agree as to their competency, or in 
case of paragraph 1, as to the seat. 



530 BULLETIN OF THE BUREAU OF LABOR. 

Par. 3. The imperial chancellor exercises the rights of the highest administrative 
authority for the establishments of the Empire and for their special insurance authori- 
ties and for insurance carriers. 

Article 114. 

The provisions of this law are also applicable for the independent manors and 
marches {ausmdrhische Bezirke). The lord of the manor or the march authorities 
(Gemarhungsberechtigte) exercise there the rights and duties in place of the communes. 

ii. legal assistance. 

Article .115. 

Paragraph 1. The public authorities are required to comply with all requests 
pertaining to the execution of this law coming to them from insurance and other public 
authorities and from administrative bodies of the insurance carriers, especially to 
execute all decisions which may be carried out. 

Par. 2. Supervisory transactions as described in article 347, paragraph 4, article 404, 
paragraph 3, and articles 888, 1465, and 1470, may be demanded only under the con- 
ditions named therein. 

Article 116. 

The administrative bodies of the insurance carriers have to give this legal assistance 
to each other as well as to the authorities and poor-law unions. 

Article 117. 

Per diem allowances, traveling expenses, fees for witnesses and experts, and all 
other cash expenditures arising out of legal assistance, must be paid by the insurance 
carriers as their own administrative costs. 

iii. benefits. 

Article 118. 

Benefits granted according to this law or to supplementary State laws, and relief 
given in their place through the transfer of the claims, are not public charities. 

Article 119. 

Paragraph 1. The claims of the persons entitled thereto may, with reservation of 
article 1325, only be legally transferred, assigned, or attached — • 

1. To cover an advance on his claims received by the person entitled to benefits 

either from the employer or from an administrative body of the insurance 
carrier or one of its members, before the allowance of the benefits. 

2. To cover claims designated in article 850, paragraph 4, of the Code of Civil 

Procedure (Zivilprozessordnung). 

3. To cover claims from communes, poor-law unions, and the employers and funds 

representing them, entitled to reimbursement according to article 1531; 
transfer, assignment, and attachment are only permissible up to the amount of 
legal claims for reimbursement. 

4. To cover arrears of contributions which have been overdue not longer than 

three months. 
Par. 2. As an exceptional measure, the person entitled thereto may also transfer the 
claim in other cases, wholly or partly, to other persons, with the approval of the local 
insurance office. 

Article 120, 

Paragraph 1. To inebriates not under guardianship, benefits in kind may be 
granted wholly or partly. This must be done on demand of a poor-law union affected 
or of the communal authority of the place of residence of the inebriate. In the case of 
inebriates under guardianship, the granting of the benefits in kind is only permissible 
with the approval of the guardian. On his demand it must be done. 

Par. 2. The commune where the claimant resides grants the benefits in kind. The 
claim to cash benefits is transferred to the commune up to the value of the payments 
in kind received. Benefits in kind may also be granted by placing him in a sanato- 
rium for inebriates or with approval of the commune, through the intervention of 
an institution for inebriates o 



workmen's insurance code of JULY 19, 1911 GERMANY. 531 

Par. 3. A balance of cash benefits is to be assigned to the husband or wife of the 
person entitled to compensation, his children or his parents, or, in case he has none, 
to the commune to be used for him. 

Article 121. 

Paragraph 1. The local insurance office (decision committee) decrees the order 
after a hearing of the communal authority and of the person entitled to benefits and 
communicates it in writing to them and to the insurance carrier. It decides in dis- 
putes between the communal authority and the person entitled to benefits. 

Par. 2. On appeal the superior insurance office decides finally. 

Par. 3. T\Tien the case relates to cash benefits of the accident or of the invalidity 
and survivors' insurance the insurance carrier notifies the Post Office Department if 
the claim to cash benefits has been finally transferred to the commune. 

IV, MEDICAL treatment. 

Article 122. 

Paragraph 1. The medical treatment in the meaning of this law shall be given by 
registered physicians, and for dental diseases by registered dental surgeons (appro- 
bierte Zahnarzte) (art. 29 of the Industrial Code). It includes assistance of other per- 
sons as barber surgeons, midwives, medical helpers, medical attendants, nurses, 
massem's, etc., as also dental assistants (Zahntechniker), but only in the case of an order 
by the physician (or dental surgeon) or in urgent cases, if no registered physician (or 
dental surgeon) is available. 

Par. 2. The highest administrative authority may specify how far otherwise assist- 
ants may give independent treatment within the limits of their powers as authorized 
by the State. 

Article 123. 

In the case of dental diseases, but excluding diseases of the mouth or gums, treat- 
ment may be given with the approval of the insured person by dental assistants in 
addition to dental surgeons. The highest administrative authority specifies how far 
dental assistants may give otherwise independent treatment in case of such dental 
diseases. This authority may specify how far this may also be done by medical 
helpers and medical attendants. It specifies further who is to be considered a dental 
assistant in the meaning of this law. 

V. time limits. 

Article 124. 

Paragraph 1. If the beginning of a time limit is determined by an event or point 
of time, the time limit begins with the day following the event or the point of time. 

Par. 2. If a time limit is extended, the new time limit begins with the expiration 
of the old one. 

Article 125. 

Paragraph 1. A time limit determined by days ends with the expiration of its 
last day, a time limit determined by weeks or months with the expu-ation of that 
day of the last week or the last month which corresponds according to name or num- 
ber to the day on which the event or the point of time falls. 

Par. 2. In case the corresponding day is missing in the last month, the time limit 
ends with the month. 

Article 126. 

In case it is not necessary for a period of months or years to be continuous, then the 
month will be reckoned as having 30 days and the year as having 365 days. 

Article 127. 

Paragraph 1. In case the day set for the statement of intention or for a payment 
or for the expiration of a time limit falls on a Sunday or a general holiday recognized 
by the State in the place of declaration or of payment, then the succeeding working 
day takes its place. 

Par. 2. This provision is not applicable for the duration of benefits to which an 
insurance carrier is bound. 



532 BULLETIN OF THE BUEEAU OF LABOK. 

Article 128. 

Paragraph 1. So far as this law does not provide otherwise, legal measures are to 
be inaugurated within one month after delivery of the contested decision. 

Par. 2. For seamen sojourning outside of Europe this time limit is determined by 
the office which decreed the contested decision; it must be at least three months from 
the date of delivery. 

Article 129. 

Paragraph 1. So far as this law does not provide otherwise, legal measures shall 
be inaugurated at the office which has to make the decision. 

Par. 2. The time limit is considered as observed when the legal measures have 
been received in time by another German authority or by an administrative body of 
the insurance carrier, or in case of the navigation accident insurance also by a Ger- 
man marine office (Seemannsamt) in a foreign country. 

Par. 3. The legal documents are to be delivered immediately to the competent 
authority. 

Article 130. 

Legal measures effect a stay only in cases where the law so provides. 

Article 131. 

Paragraph 1. In case an interested person has been kept by natural events or by 
other unavoidable accidents from observing the legal time limit of procedure, he shall 
on application be granted reinstatement to his previous status. 

Par. 2. On application reinstatement will also be granted if the document received 
too late has been mailed at least three days before the expiration of the time limit. 

Article 132. 

Paragraph 1. In the case of article 131, paragraph 1, application for reinstatement 
must be made within a period, the duration of which shall be determined by the dura- 
tion of the period lapsed. The period begins with the day on which the preventing 
cause was removed. 

Par. 2. In cases of article 131, paragraph 2, application for reinstatement shall be 
made within one month. The period begins with the day on which the interested 
party learns that he has not observed the time limit. 

Par. 3. No application for reinstatement may be made after the expiration of 
two years from the end of the time limit. 

Article 133, 

Paragraph 1. The application for reinstatement shall — 

1. State the facts forming the basis for the reinstatement; 

2. Indicate the means to make these facts evident; 

3. Make good the lapsed transaction if it has not already been done. 

Par. 2. The application is made to the authority where the time limit has lapsed; 
article 129, paragraphs 2 and 3, are correspondingly applicable. The decision rests 
with the authority which decides upon the action which has later been made good. 

Article 134. 

Paragraph 1. The procedure concerning the application shall be combined with 
that concerning the action made good later, but the application may first of all be 
discussed and decided alone. 

Par. 2. For the decision concerning the admissibility of the application and its 
contesting, the same provisions are applicable as for the action made good later. 

VI. notifications. 

Article 135. 

Paragraph 1, Notifications which start a time limit may be made by registered 
letter. 

Par. 2. The postal receipt justifies after two years from its making out, the assump- 
tion that delivery has been made within the regular time limit after the mailing. 



workmen's insurance code of JULY 19^ 1911 GERMANY. 533 

Article 136. 

Paragraph 1. Persons not living in Germany must upon demand designate a per- 
son authorized to receive notifications. 

Par. 2. If the abode is unknown and a j)erson authorized to receive notifications 
has not been designated within the time limit set, then an announcement in the busi- 
ness rooms of the authority or of the proper office may take the place of the notifica- 
tion; the time limit must not be less than one month. 

vn. fees and stamp taxes. 

Article 137. 

All proceedings and documents necessary to the insurance carriers and insurance 
authorities to establish and transact the legal relations between the insurance carriers 
on the one hand and the employers or insured persons or their survivors on the other, 
are exempt from fees and stamp taxes, as far as this law does not provide otherwise. 

Article 138. 

The same is applicable for proceedings out of court and documents of this kind, and 
for such nonofficial powers of attorney and official certificates which, according to 
this law, become necessary for identification and authentication. 

vni. prohibitions and penalties. 

Article 139. 

Paragraph 1. Employers and their employees, as well as insurance carriers, are 
prohibited from restricting insured persons in the acceptance or discharge of an hon- 
orary office of the imperial insurance, or from injuring them on account of the accept- 
ance or manner of discharge of such an honorary office. The employers and their 
employees are further prohibited from preventing either wholly or partly, either 
through agreements or working regulations, the application of the provisions of this 
law to the injury of the insured persons. 

Par. 2. Agreements conflicting herewith are void. 

Article 140. 

Employers or their employees infringing article 139, paragraph 1, shall be punished 
by fines not to exceed 300 marks [$71.40] or by imprisonment as far as they are not 
liable to more severe penalty in accordance with other legal provisions. 

Article 141. 

Paragraph 1. The persons named below, if they disclose without authority what 
they have learned while performing their official duty about diseases or other inva- 
lidity of insured persons, or the causes thereof, shall be punished by fines not to exceed 
1,500 marks [|357] or by imprisonment for not more than three months; prosecution 
shall be instituted only on application of the insured person or of the supervisory 
authority; these persons are — 

A member of an administrative body or an employee of an insurance carrier; 

A member or an employee of an insurance authority; 

A representative or associate in an insurance authority. 
Par. 2. Other persons for v»'hom this law provides a benefit from an insurance 
carrier are considered as insured persons. 

Article 142. 

Paragraph 1. The following persons, if they disclose business or trade secrets 
which they have learned while performing their official duties, shall be punished 
with fines not to exceed 1,500 marks [$357], or with confinement in jail: 
Persons designated in article 141, paragraph 1; 
Special experts according to article 880; 

Members of committees for the decision of appeals made under article 1000, para- 
graph 2, and of protests made under article 1023, paragraph 1. 

18544°— No. 96—12 13 



534 BULLETIN OF THE BUKEAU OF LABOR. 

Par. 2. If this is done to injure the undertaker, or to procure for themselves or 
other persons pecuniary advantages, they shall be punished by imprisonment. In 
addition to the prison sentence they may be punished with the loss of their civic 
rights and fines not to exceed 3,000 marks [$714]. 

Par. 3. Prosecution in the case mentioned in paragraph 1 shall be instituted only 
on application of the undertaker. 

Article 143. 

The persons designated in article 142, paragraph 1, shall be punished with impris- 
onment if they make use of business or trade secrets to the disadvantage of the under- 
taker or to procure for themselves or other persons a pecuniary advantage. In addi- 
tion to imprisonment they may be sentenced to the loss of their civic rights and fined 
not to exceed 3,000 marks [$714]. 

Article 144. 

In cases mentioned in article 142, paragraph 2, or article 143, if there are mitigating 
i rcumstances, the punishment shall be a fine not to exceed 3,000 marks [$714]. 

Article 145. 

In the case of officials subject to the rules of service of a State or communal authority, 
the provisions applicable for them take the place of articles 141 to 144. 

Article 146. 

Paragraph 1. With reservation of article 59, paragraph 3, article 80, paragraph 4, 
article 104, paragraph 2, article 108, paragraph 2, and articles 914, 1045, and 1224, 
fines accrue to the treasury of the insurance carrier; those imposed by a court only 
then when this law so provides. 

Par. 2. Fines, except such as are imposed by a court, shall be collected in ,the 
same manner as arrears. 

Article 147. 

Contraventions of this law for which the courts are not competent, expire by limi- 
tation in three months, if not punishable with a fine of more than 300 marks [$71.40], 
otherwise in one year. The period of limitation begins with the day on which the 
act was committed. It is interrupted by any action directed against the violator by 
the bodies competent to impose a penalty. With the interruption begins a new period 
of limitation; it ends at the latest with the expiration of 10 years from the day on 
which the contravention took place. 

Article 148. 

Punishments imposed finally and not decreed by the courts expire by limitation 
in two years. The period of limitation begins with the day on which the decision 
became final. It is interrupted by any action directed to the execution of the pun- 
ishment by the bodies charged with the execution. With the interruption begins a 
new period of limitation; it ends at the latest with the expiration of four years from 
the day on which the decision became final. 

ix. local wage rate, 

Article 149. 

Paragraph 1. As the local wage rate that rate shall be used which is the daily 
wage customarily paid in the locality to ordinary day laborers. 

Par. 2. The superior insurance office determines and publishes the local wage rate. 
The directorates of the insurance institutes affected shall be previously given a hear- 
ing; the local insurance office shall express an opinion after having given a hearing 
to the communal authorities and to the directorates of the sick funds affected. 

Article 150. 

Paragraph 1. The local wage rate shall be determined separately for men and for 
women, for insured persons under 16 years, for those between 16 and 21 years, and for 
those over 21 years. 



WOBKMEI^'S INSURANCE CODE OF JULY 19, 1911 GERMANY. 535 

Par. 2. The insured persons under 16 years (juveniles) may be classified as young 
persons of 14 years and over and children of less than 14 years; apprentices are con- 
sidered as young persons. 

Par. 3. In other respects the local wage rate as determined uniformly according 
to the average for the whole district of each local insurance office. Exceptions are 
permissible when there are considerable differences in the amount of wages in different 
localities or between city and country. 

Article 151. 

Paragraph 1. The local wages are determined at the same time for the whole 
Empire, at first until December 31, 1914, afterwards always for four years. Changes 
in the interim shall only be in force until the next general determination. 

Par. 2. All changes shall come into use only two months after their publication. 

Article 152. 

Before the beginning of each four-year term the imperial chancellor shall publish 
in the Zentralblatt fiir das Deutsche Reich a list of all determinations in force, and 
also at least annually a list of changes made in the meantime. 

x. place op employment. 

Article 153. 

Paragraph 1. The place of employment is the place in which the employment 
actually takes place. 

Par. 2. For insured persons who are employed at a definite work place (establish- 
ment, place of service), this shall be considered also as the place of employment, 
while they are performing elsewhere pieces of work of short duration for the employer. 

Par. 3. The same is applicable to insured persons who are employed at various 
times from a definite place of work on single pieces of work in districts of various local 
or rural sick funds. 

Par. 4. It is further applicable to insured persons who are only employed on single 
pieces of work outside of the definite work place, if both the latter and their place of 
employment are situated in the district of the same local insurance office. 

Article 154. 

For employed persons for whom no definite work place is provided, the seat of the 
establishment is considered as the place of employment. 

Article 155. 

For insured persons who have been engaged by the administration of an establish- 
ment for a varied employment to be carried on in different communes, that commune 
where the immediate management of the work has its seat is to be considered as the 
place of employment. After a hearing of the interested administrations and com- 
munes or unions of communes the superior insurance office can specify otherwise in 
this regard. 

Article 156. 

For insured persons employed at an agricultural occupation, changeable in various 
communes, the seat of the establishment (arts. 963 and 964) is considered as the place 
of occupation. 

XI. legislation op foreign countries. 

Article 157. 

Paragraph 1. So far as other countries have put into operation a system of relief 
corresponding to the imperial insurance, the imperial chancellor, with the approval 
of the Federal Council and with due regard to reciprocity, may make agreements 
as to what extent the relief shall be regulated according to the imperial insurance 
or the relief provisions of the other country for establii^hments overlapping from the 
territory of one country into that of another, as well as for insured persons temporarily 
occupied in the territory of the other country. 

Par. 2. Likewise if there is a reciprocal consideration, the insurance of citizens of a 
foreign country may be regulated otherwise than according to the provisions of this 



536 BULLETIN OF THE BTJKEAU OF LABOK. 

law, and the operation of the relief of the one country be facilitated in the territory of 
the other. In these agreements the obligation of the employers to pay contributions 
according to this law must not be reduced or done away with. The Reichstag must 
be notified of these agreements. 

Par. 3. These provisions are correspondingly applicable in the case ef a relief which 
takes the place of the imperial insurance. 

Article 158. 

With the approval of the Federal Council, the imperial chancellor can decree that 
a right to reimbursement may be exercised against subjects of a foreign State or their 
legal successors. 

Xn. GENERAL DEFINITIONS. 

1 . Employments subject to insurance. 

Article 159. 

With reservation of the provisions of articles 551, 928, and 1062, the employment of 
husband or wife by the other does not establish any insurance obligation. 

2. Earnings. 
Article 160. 

Paragraph 1. In the meaning of this law, earnings consist not only of salaries of 
wages, but also of participation in profits, receipts in kind, or other receipts which 
the insured person receives from the employer or a third party in place of salary or 
wages or in addition to them, even if it is only a matter of custom. 

Par. 2. The value of receipts in kiud shall be reckoned according to local prices, 
which are to be determined by the local insurance office. 

3. Agriculture. 

Article 161. 

In so far as there are no different provisions, the provisions of this law relating to 
agricultural establishments, agricultural employers, agricultural undertakers, and 
agricultural employees, are also applicable to forestry establishments, forestry em- 
ployers, forestry undertakers, and forestry employees, 

4. Persons engaged in home-working industries. 

Article 162. 

Paragraph 1. In the meaning of this law, those independent workmen who manu- 
facture or prepare industrial products in their own workrooms on the order and for 
the account of others are considered as persons engaged in home- working industries. 

Par. 2. They are also considered as such if they themselves procmre the raw or 
auxiliary materials, as well as for the time during which they work temporarily for 
their own account. 

5. German seagoing vessels. 

Article 163. 

Every vessel sailing under the German flag, and used exclusively or preferably 
(vorzugsweise) for maritime navigation, is considered as a German seagoing vessel. 
Merely because natives of protectorates display the flag of the Empire (art. 10 of the 
protectorate law, Reichs-Gesetzblatt, 1900, p. 812), the ship does not become a German 
seagoing vessel in the meaning of this law. 

6. Fiscal year. 

Article 164. 

The fiscal year shall be the calendar year. 



WOEKMEN's insurance code of JULY 19, 1911 GEEMANY. 537 

BOOK TWO— SICKNESS INSURANCE. 
Section One — Scope of the Insurance. 

I. COMPULSORY insurance. 

Article 165. 

Paragraph 1. The following are insured against sickness: 

1. Workmen, helpers, journeymen, apprentices, and servants. 

2. Establishment officials, foremen, and other employees in similar higher posi- 

tions, if such employment is for all of them their principal occupation. 

3. Clerks and apprentices in commercial establishments, and clerks and appren- 

tices in pharmacies. 

4. Members of the stage and of orchestras, without regard to the artistic value of 

their services. 

5. Teachers and tutors. 

6. Persons engaged in home- working industries. 

7. The crews of German seagoing vessels, provided that they are subject neither 

to articles 59 to 62 of the Navigation Code (Reichs-Gesetzblatt, 1902, p. 175, 

and 1904, p. 167), nor to articles 553 to 553b of the Commercial Code; also the 

crews of vessels engaged in inland navigation. 

Par. 2. The prerequisite of insurance for all persons designated in paragraph 1, 

under Nos. 1 to 5 and No. 7, with the exception of all classes of apprentices, is that they 

shall be employed for compensation (art. 160), and that for those designated under 

Nos. 2 to 5 as well as for masters of vessels, that their regular annual earnings in the 

form of compensation do not exceed 2,500 marks [$595]. 

Article 166. 

The special provisions of articles 416 to 494 are applicable to the insurance of persons 
employed in agriculture, as servants, of persons employed temporarily or in itinerant 
trades, of persons engaged in home industries and their home-working employees, as 
well as of all classes of apprentices employed without compensation. 

Article 167. 

If when this law comes into force, other groups of employees are subject to insurance 
in a Federal State according to State laws, then the State government may decree that 
in case of sickness they are insured according to this law, and may determine the par- 
ticulars thereof. 

Article 168. 

The Federal Council determines how far temporary services are exempt from the 
insurance. 

Article 169. 

Paragraph 1. Exempt from the insurance are persons emploj^ed in the e->tablish- 
ments or in the service of the Empire, of a Federal State, of a union of communes, of 
a commune, or of an insurance can-ier, if there has been guaranteed to them from their 
employers a claim at least equal to the sick benefits in the amount and duration of the 
regular benefits of sick funds (art. 179), or for the same period, to salary, retirement 
pension, part pay or similar receipts equal to one and a half times the amount of the 
pecuniary sick benefits (art. 182). 

Par. 2. The same is applicable to teachers and tutors of public schools and institu- 
tions. 

Article 170. 

Paragraph 1. On application of the employer, persons employed in the establish- 
ments or in the service of other public unions or public corporations shall be exempted 
by the highest administrative authorities from the insurance obligation if they have 
been guaranteed one of the claims designated in article 169 from their employer, or if 
they are only being trained for their profession. 

Par. 2. The same is applicable for officials and employees of the court, domanial, 
cameralistic, forest, and similar administrations of the State sovereigns, of the ducal 
regency of Brunswick, and of the administration of the entailed estates of the princes 
of Hohenzollern. 



538 BULLETIIT OF THE BUEEAU OF LABOR. 

Article 171. 

On application of the employer, the highest administrative authority may also 
specify how far persons employed in establishments or in the service of nonpublic 
corporations, or as teachers and tutors of nonpublic schools or institutions are exempt 
from the insurance, if there has been guaranteed to them from their employer one 
of the claims designated in article 169, or if they are being trained solely for their 
occupation. 

Article 172. 

The following are exempt from the insurance: 

1. Officials of the Empire, of the federal States, of the unions of communes, of the 

communes, and of the insurance carriers, and teachers and tutors in public 
schools or institutions, as long as they are being trained solely for their occupa- 
tion; 

2. Military persons who carry on during their service, or during their training for 

a civil employment, one of the occupations designated in article 165, to whom 
article 169 is to be applied ; 

3. Persons who are employed in teaching for compensation during their scientific 

training for their future occupation ; 

4. Members of ecclesiastical societies, deaconesses, sisters of schools and similar 

persons, if because of religious or ethical motives they are employed in nurs- 
ing, education, or other activities of public benefit and do not receive as com- 
pensation more than free maintenance. 

Article 173. 

Upon his application, a person able to work permanently only to a small extent shall 
be exempted from the insurance obligation so long as the poor-law union which is 
liable for relief at the time agrees thereto. 

Article 174. 

On application of the employer, the following shall be exempted from the insurance 
obligation : 

1. Apprentices of every kind, so long as they are employed in the establishment 

of their parents; 

2. Persons temporarily employed during unemployment in workmen's colonies 

or similar benevolent institutions. 

Article 175. 

Paragraph 1. The directorate of the fund decides on the application for exemption 
(arts. 173, 174). The exemption becomes effective from the time of the receipt of the 
application. 

Par. 2. If the application is refused, the local insurance office on appeal decides 
finally. 

ii. voluntary insurance. 

Article 176. 

Paragraph 1. The following persons may join the insurance voluntarily if their 
total yearly income does not exceed 2,500 marks [$595]: 

1. Employees exempt from insurance of the kind designated in article 165, 

paragraph 1; 

2. Members of the family of the employer, engaged in his establishment, without 

any specific employment relation and without compensation; 

3. Industrial and other undertakers of establishments, who regularly employ 

either no one or at the most two persons subject to insurance. 

Par. 2. The Federal Council specifies how far, under similar assumption, persons 
exempted from insurance according to article 168 may join the insurance voluntarily. 

Par. 3. The constitution of the sick fund may make the right to join dependent on a 
certain age limit and on the presentation of a health certificate from a physician. The 
establishment of an age limit requires the approval of the superior insurance office. 

Article 177 

If when this law becomes effective there are other groups in a federal State which 
according to State law have the right to join the insurance voluntarily, then this right 
shall be regulated according to detailed specifications issued by the highest adminis- 
trative authority. 



WORKMEX'S INSUEAN'CE CODE OF JULY 19, 1911 GERMANY. 539 

Article 178. 

The right to voluntary insurance ceases in every case where the regular total yearly 
income exceeds 4,000 marks [$952]. 

Section Two — Benefits of the Insurance. 

I, general provisions as to benefits. 

Article 179. 

Paragraph 1. The benefits provided by the insurance consist of the benefits of 
the sick funds (art. 225) in the form of sickness benefits, maternity benefits, and 
funeral benefits, as prescribed in this book. 

Par. 2. These benefits are considered as the regular benefits of the sick funds, and 
also even when the constitution makes use of the provisions of articles 188 and 192. 

Par. 3. The additional benefits specified by the constitution are also objects of the 
insurance; they may be granted only so far as this book provides. 

Article 180. 

Paragraph 1. The cash benefits of the fund shall be computed according to a basic 
wage. As such basic wage the constitution shall specify the average daily compensa- 
tion of those classes of insured persons for whom the fund has been established, but 
not to exceed 5 marks [$1.19] per working day. 

Par. 2. The constitution may also determine the average daily compensation 
according to the various rates of wages of the insured persons by classes up to 6 marks 
[$1.43]. 

Par. 3. The determination requires the approval of the superior insurance office 
(decision chamber). 

Par. 4. In place of the average daily compensation the constitution may specify as 
the basic wage the actual earnings of the individually insured persons up to 6 marks 
[$1.43] per working day. 

Par. 5. For persons who voluntarily join the insurance, for whom no basic wage can 
be ascertained according to the above, the constitution shall specify the same. 

Article 181. 

Paragraph 1. In the case of rural sick funds the constitution may specify the local 
wage rate as the basic wage. 

Par. 2. But for establishment officials, foremen, and other persons in similar higher 
positions, and also for artisans, the basic wage shall be determined according to article 
180. In districts without general local sick funds the same is applicable to the insured 
persons who according to the nature of their employment should belong to such a fund. 

Par, 3. In districts without a rural sick fund the constitution of the general local 
sick fund may specify the local wage rate as the basic wage for the insured persons 
who according to the nature of their employment should belong to a rural sick fund ; in 
this connection paragraph 2, sentence 1, is correspondingly applicable. The superior 
insurance office can order the insertion of such a provision. 

Par. 4. In the case of insured persons whose basic wage in accordance with the 
above is specified otherwise than as the regular basic wage of the sick fund, the fund 
must keep a separate account for their contributions and benefits in so far as the highest 
administrative authority does not provide otherwise. 

II. SICKNESS benefits. 

Article 182. 

As sickness benefits (KranJcenMlfe) shall be granted the following: 

1. Sickness care (Krankenpjlege) from the beginning of the sickness on; it includes 

medical attendance, and supply of medicines, eyeglasses, trusses, and other 
minor therapeutic appliances; 

2. Pecuniary sick benefit (Krankengeld) in the amount of half the basic wage for 

each working day, if the sickness incapacitates the insured person for work; 
it is granted beginning with the fourth day of sickness, but if the disability 
begins later, then from the day of its beginning. 



540 BULLETIIT OF THE BUREAU OF LABOE. 

Article 183. 

Paragraph 1. The sick benefits terminate at the latest with the expiration of the 
twenty -sixth week from the beginning of the sickness, but if the pecuniary benefit 
has been received beginning with a later date, then from this later date. If there 
was a period during tlie receipt of pecuniary benefit in which only medical care was 
granted, then for not more than 13 weeks this period shall not be included for the 
duration of the receipt of pecuniary benefit. 

Par. 2. If the pecuniary benefit has to be paid after the twenty-sixth week from the 
beginning of the sickness, then with its receipt the claim to medical care terminates. 

Article 184. 

Paragraph 1. In place of medical care, the sick fund may grant treatment and 
maintenance in a hospital (hospital treatment — Krankenhausjpflege) . This requires 
the consent of the patient if he has a household of his own, or if he is a member of 
the househld of his family. 

Par. 2. In the case of a minor over 16 years of age, his consent is sufficient 

Par. 3. His consent is not required if — 

1. The nature of the sickness demands a treatment or care which is not possible 

in the family of the patient; 

2. The sickness is infectious; 

3. The patient has repeatedly acted contrary to the sickness regulations (art. 347) 

or to the orders of the attending physician ; 

4. His condition or his conduct make continuous observation necessary. 

Par. 4. In the cases mentioned in paragraph 3, Nos. 1, 2, and 4, the sick funds shall, 
if possible, grant hospital treatment. 

Par. 5. Whenever several suitable hospitals are available which are willing to 
undertake the hospital treatment on the same conditions, the sick fund shall, under 
reservation of article 371, leave, the choice to the beneficiary. 

Article 185. 

Paragraph 1. With the consent of the insured person, the sick fund may grant 
care and attendance by nurses, nursing sisters, or other attendants, particularly in 
the cases where the admission of the patient to a hospital seems necessary, but can 
not be effected, or when there is an important reason for leaving the patient in his 
household or with his family. 

Par. 2. For this purpose the constitution may permit a deduction up to one-fourth 
of the pecuniary benefit. 

Article 186. 

Whenever hospital care has been granted to an insured person who has supported 
dependents either wholly or principally from his earnings, there shall in addition be 
paid to the dependents house money (Hausgeld) equal to one-half of the amount of 
the pecuniary sick benefit. The house money may be paid directly to the dependents. 

Article 187. 
The constitution may — 

1. Extend the duration of the sick benefits up to one year; 

2. Grant care for convalescents up to the duration of one year after the expiration 

of the sick benefits; 

3. Permit the granting of such appliances to prevent disfigurement or deformity, 

which after the completion of the medical treatment become necessary in 
order to restore or maintain the ability to work. 

Article 188. 

If insured persons have already received the pecuniary sick benefit or the benefits 
substituted therefor for 26 weeks successively or collectively within 12 months, either 
on the basis of the imperial insurance or from a miners' sick fund or a substitute fund, 
then the constitution may limit the sick benefits to the regular benefits and to a total 
duration of 13 weeks in a new case which occurs during the next 12 months. This is 
only applicable where the sick benefits are demanded on account of the same cause 
of sickness which has not been removed. 

Article 189. 

Paragraph 1. Where an insured person draws a pecuniary sick benefit at the same 
time from another insurance, the sick fund has to reduce its benefit to such an extent 



WOKKMEN's insurance code OE JULY 19, 1911 GERMANY. 541 

that the total pecuniary sick benefit of the member does not exceed the average 
amount of his daily earnings. 

Par. 2. The constitution may refrain from making the reduction either as to all of 
it or part of it. 

Article 190. 

When they make claim to the pecuniary sick benefit or its equivalent, the consti- 
tution may require the members to communicate to the directorate the amount of the 
benefits which they are receiving at the same time from another sickness insurance. 
The question as to which sickness insurance provides the benefits is not permissible. 

Article 191. 

Paragraph 1. The constitution may increase the pecuniary sick benefit up to 
three-fourths of the basic wage and grant it generally for Sundays and holidays. 

Par. 2. The constitution may grant the pecuniary sick benefit from the first day 
of the disability in cases of sickness either lasting longer than one week, or resulting 
in death, or caused by industrial accidents, or with approval of the superior insurance 
office, also in other cases of sickness. 

Article 192. 

The constitution may refuse the pecuniary sick benefit to members either wholly 
or partly if — 

1. They have injured the sick fund by an act punishable by loss of civic rights, 

for the diiration of one year after the act; 

2. The sickness has been caused intentionally or by culpable participation in 

brawls or disorderly conduct, for the duration of such sickness. 

Article 193. 

Paragraph 1. With the approval of the superior insurance office, the constitution 
may establish a maximum amount for minor therapeutic appliances, and also specify 
that the fund may grant an additional allowance up to this amount for major thera- 
peutic appliances. 

Par. 2. It may grant for the care of patients still other means besides minor thera- 
peutic appliances, particularly special diet for sickness. 

Par. 3. In the case of insured persons who voluntarily remain members of a sick 
fund (art. 313) the constitution may grant them in the place of the sick care an amount 
equal to at least one-half of the pecuniary sick benefit, if they are not residing in the 
district of the sick fund or of the local insurance office. 

Article 194. 
The constitution may — 

1. Increase the house money up to the amount of the legal pecuniary sick benefit; 

2. Grant to insured persons, for whom no house money is to be paid, a pecuniary 

sick benefit up to one-half of its legal amount in addition to hospital treat- 
ment. 

III. maternity benefits. 

Article 195. 

Paragraph 1. Women lying-in who in the preceding year before their confine- 
ment have been insured against sickness at least six months on the basis of the imperial 
insurance or in a miners' sick fund shall receive a maternity benefit in the amount of 
the pecuniary sick benefit for eight weeks, six of which must fall in the period after 
confinement. 

Par. 2. In the case of members of rural sick funds who are not subject to the Indus- 
trial Code the constitution must specify that the duration of the receipt of maternity 
benefits shall be at least four weeks, but not more than eight weeks. 

Par. 3. The pecuniary sick benefit shall not be granted in addition to the maternity 
benefit. The weeks after the confinement must be consecutive. 

Article 196. 

Paragraph 1. With the consent of the women lying-in, the sick fund may — 
1. Grant in place of the maternity benefit, medical treatment and maintenance 
in a lying-in home; 



^ 



542 BULLETIN OF THE BUREAU OF LABOR. 

2. Grant treatment and attendance by home nurses and deduct for it not more 
than one-half of the maternity benefit. 
Par. 2. Article 186 is correspondingly applicable in the case of number 1. 

Article 197. 

If a woman lying-in has been insured during the last year in several sick funds, 
miners' sick funds, or substitute funds, then on demand the amount of the maternity 
benefit shall be repaid by the other funds to the sick fund liable for the benefits, 
according to articles 195 and 196, in proportion to the duration of her membership. 

Article 198. 

The constitution may grant either to married women subject to insurance or to all 
females subject to insurance under the requisites mentioned in article 195, paragraph 
1, the services of a midwife and the services of an obstetrician if such become necessary 
at the confinement. 

Article 199. 

In the case of pregnant women who have belonged at least six months to the sick 
fund, the constitution may — 

1. Grant them a pregnancy benefit in the amount of the pecuniary sick benefit 

for a total duration of not more than six weeks, if they become incapacitated 
for work on account of their pregnancy; 

2. Include in the duration of this benefit the time of the granting of a maternity 

benefit before confinement; 

3. Grant the services of a midwife and medical treatment if such become neces- 

.sary for ailments incidental to pregnancy. 

Article 200. 

The constitution may grant to women lying-in of the class designated in article 195, 
paragraph 1, a nursing benefit up to the amount of one-half of the pecuniary sick 
benefit and up to the expiration of the twelfth week after the confinement, so long as 
they themselves nurse their newborn children. 

IV. puneral benefits. 

Article 201. 

As a funeral benefit, there shall be paid at the death of an insured person twenty 
times the amount of the basic wage. 

Article 202. 

If, while a member of a sick fund, a sick person dies from the same sickness within 
one year after the expiration of the sick benefits, the funeral benefit shall be paid: 
Provided, That he has been incapacitated for work up to his death. 

Article 203. 

From the funeral benefit are first defrayed the costs of burial, and they shall be paid 
to the person who has taken care of the burial. In case there is a surplus, then in the 
following order — the husband or wife, the children, the father, the mother, and the 
brothers and sisters are successively entitled to receive it, provided that they were 
living in the same household with the deceased at the time of his death. In the 
absence of such persons the surplus reverts to the sick fund. 

Article 204. 

The constitution may increase the funeral benefit up to forty times the amount of 
the basic wage; it may also establish the minimum amount at 50 marks [$11.90]. 

V. benefits to the family. 

Article 205. 
The constitution may grant— 

1, Sickness care to members not subject to insurance, of the family of an insured 
person. 



WOKKMEN'S insurance code of JULY 19^ 1911 GERMANY. 543 

2. A maternity benefit to the wife not subject to insurance, of an insured person. 

3. A funeral benefit on the death of a wife or husband or a child of an insured 

person. It may be fixed for the wife or husband at not more than two- 
thirds, for a child at not more than one-half of the funeral benefit of a mem- 
ber, and is to be reduced by the amount of any funeral benefit for which 
the deceased himself was insured according to law. 

vi. general provisions. 

Article 206. 

For persons subject to the insurance the claim to the regular benefits begins with 
their membership (arts. 306 to 308). 

Article 207. 

The constitution may specify that the claim of persons entitled to insurance who 
have voluntarily joined the sick fund shall begin only after a waiting term of not more 
than 6 weeks. 

Article 208. 

It may specify that the claim to additional benefits of the fund shall begin only after 
a waiting term of not more than 6 months after their admittance. Such a provision 
shall not be applicable to members who, during the last 12 months have already had 
for at least 6 months a claim to the additional benefits of a sick fund or a miners' sick 
fund. 

Article 209. 

Paragraph 1. By separation from membership this waiting term can be inter- 
rupted for the duration of not more than 26 weeks. 

Par. 2. For members who leave in order to perform their compulsory service in the 
army or navy the above duration is increased by this period of service. 

Article 210. 

With the exception of funeral benefits, the cash benefits shall be paid at the expira- 
tion of each week. 

Article 211. 

In cases where the insurance has already begun the benefits may be increased but 
not reduced by amendments to the constitution; changes in the basic wage shall have 
no influence. 

Article 212. 

Paragraph 1. If an insured person who is receiving cash benefits goes over to 
another fund, the latter takes over the further payment of benefits according to its 
constitution. The period during which benefits have already been received shall be 
included in counting the duration of the benefits. 

Par. 2. The insured person shall receive additional benefits only if he has already 
acquired a claim to additional benefits in his former sick fund. 

Article 213. 

If a sick fund has accepted the contributions for a person for 3 months without 
interruption and without objection, after application has been made in due form and 
not intentionally incorrect, and if it develops, after an insurance case occurs, that the 
person was not subject to insurance and was not entitled to insurance, then the sick 
fund must nevertheless grant him the benefits prescribed by the constitution. 

Article 214. 

Paragraph 1. Insured persons who leave the fund on account of lack of employ- 
ment (Erwerbslosigkeit) and who in the preceding 12 months have been insured 
either not less than 26 weeks or for 6 weeks immediately previous to leaving the fund, 
shall retain their claim to the regular benefits of the sick fund: Provided, That the case 
of insurance occurs during unemployment and within 3 weeks after leaving the fund. 
On application the sick fund must certify to the beneficiary his claim for these benefits. 



644 BULLETIN OF THE BUEEAU OF LABOK. 

Par. 2. A funeral benefit shall also be granted even after the expiration of the 3 
weeks if the sick benefits have been paid up to the time of death. 

Par. 3. If the unemployed person remains in a foreign country and if the constitu- 
tion does not provide otherwise the claim shall cease. 

Article 215. 

Paragraph 1. If the Federal Council specifies that persons not subject to insurance 
according to article 168 may join the insurance voluntarily, it may restrict the regular 
benefits either to medical care and to hospital treatment without house money, or to 
their substitutes (art. 185) without pecuniary sick benefit. 

Par. 2. For those persons who join the insurance voluntarily the constitution, 
with the approval of the superior insurance office, may restrict the sick-fund benefits 
either to the same extent or restrict them to the pecuniary sick benefit. 

Par. 3. For such insured persons the contributions shall be correspondingly re- 
duced. 

Article 216. 

Paragraph 1. Sick benefits shall be suspended — 

1. As long as the beneficiary is serving a prison term or is in jail pending trial 

or has been placed in a workhouse or reformatory; if the insured person has 
become incapacitated for work through sickness, and if he has supported 
wholly or partly his dependents by his earnings, then they shall be granted 
house money (art. 186). 

2. For beneficiaries who, after the case of insurance has occurred, without approval 

of the directorate of the sick fund voluntarily go to a foreign country, for the 
length of their abode there without this consent; the Federal Council may 
suspend the stopping of the claim for certain border territories. 

3. For foreign beneficiaries so long as they are expelled from the territory of the 

Empire on account of condemnation in a penal procedure. The same applies 
to foreign beneficiaries who have been expelled from the territory of a federal 
State because of condemnation in a penal procedure, so long as they do not 
stay in another federal State. 
Par. 2. If the beneficiary has dependents in Germany to whom the constitution 
allows family benefits then these benefits shall be granted. 

Article 217. 

Paragraph 1. When, after a case of insurance has occurred, an insured person 
relinquishes his abode in Germany, without a suspension of sick benefits, the sick 
fund may settle with him by the payment of a lump sum. This must correspond to 
the value of the cash benefits to which he would be entitled in Germany according to 
the probable duration of the sickness; in such case three-eighths of the basic wage 
shall be reckoned for medical care. 

Par. 2. In case of a dispute in regard to the settlement, the opinion of the physician 
agreed upon by the affected parties, otherwise of the ofl&cial physician, is decisive. 

Article 218. 

Articles 216 and 217 are correspondingly applicable to maternity benefits, as also in 
the case of article 205, Nos. 1 and 2, for the family members entitled to benefits. 

Article 219. 

Paragraph 1. Sick persons who reside outside of the district of their sick fund 
receive, on demand of their sick fund, the benefits to which they are entitled from the 
general local sick fund of their place of residence. If a special local sick fund or a rural 
sick fund for insured persons of their kind is in operation there, it must grant the 
benefits. 

Par. 2. The same is applicable to family members entitled to benefits, as also to 
unemployed persons who have left the insurance (art. 214). 

Article 220. 

The same is applicable to an insured person who falls ill during a temporary sojourn 
outside of the district of his sick fund, as long as he can not return to his place of 



workmen's insurance code of JULY 19, 1911 GERMANY. 545 

residence on account of his condition. An application from his fund is not necessary, 
but within one week after the case of insurance occurred the sick fund which grants 
the benefits must notify the sick fund of the insured person, and as far as possible 
must cany out the latter's wishes as regards the nature of the relief. 

Article 221. 

If an insured person falls ill in a foreign country he receives from the employer 
the benefits to which he is entitled from his sick fund as long as his condition does not 
permit of his returning to Germany. The employer must notify the sick fund within 
one week of the occurrence of the case of insurance, and must carry out as far as pos- 
sible its wishes as regards the nature of the relief. The sick fund may itself take over 
the relief. 

Article 222. 

In the cases of articles 219 to 221 the sick fund of the insured person must refund 
the costs to the other sick fund or to the employer. In such case three-eighths of the 
basic wage shall be considered as reimbursement for the cost of the sick care. 

Article 223. 

Paragraph 1. Claims to sick benefits lapse within two years after the day of their 
origin. 

Par. 2. Deductions from the claims of the persons entitled to benefits may only 
be made for — 

Reimbursement claims for amounts which the beneficiary has received in cases 
of article 1542, or from the imperial accident insurance, but which must be 
refunded to the sick fund. 
Contributions overdue. 
Advances paid. 

Sick-fund benefits paid in error. 

Costs of procedure which the beneficiary has to refund. 
Fines imposed by the director of the sick fund. 
Par. 3, Only half the amount of pecuniary benefits may be deducted on account 
of claims. 

Article 224. 

The local insurance office decides, by judgment procedure, in disputes between 
sick funds in regard to — 

1. Claims for refund according to articles 197 and 222. 

2. Refund of benefits granted in error. 

Section Three — Carriers of the Insurance. 

• I. KINDS OF sick FUNDS. 

Article 225. 

Paragraph 1. Sick funds, according to this law, are — 

The local sick funds (Ortskranhenkassen) . 

The rural sick funds (Landkrankenkassen) . 

The establishment sick funds (Betriehskrankenkassen) . 

The guild sick funds (Innungskrankenkassen) . 
Par. 2. Members of miners' sick funds established under the provisions of State 
laws may not join these sick funds. 

n. general local sick funds and rural sick funds. 

Article 226. 

Paragraph 1. Local sick funds shall be established for local districts (general local 
eick funds) (Allgemeine Ortskrankenkassen); rural sick funds shall also be created for 
similar areas. 

Par. 2. The local and rural sick funds shall, as a rule, be established within the 
district of a local insurance office. 

Par. 3. The highest administrative authorities may decree and permit exceptions. 



546 BULLETIN OF THE BUREAXJ OF LABOR. 

Article 227. 

The State legislation may specify for the territory or for parts of the territory of the 
federal State that no rural sick funds maybe established in addition to the general local 
eick funds. 

Article 228. 

No rural sick fund shall be established, in addition to the general local sick 'fund; 
where the rural eick fund would not have at least 250 compulsory members. 

Article 229. 

The establishment of a rural sick fund, in addition to a general local sick fund, 
may, with the approval of the superior insurance office, be done away with, where 
the local insurance office (decision chamber) deems it unnecessary after a hearing of 
the employers and persons subject to insurance affected. 

Article 230. 

The establishment of a general local sick fund, in addition to a rural eick fund, 
may, with the approval of the highest administrative authority, be done away with, 
where the local sick fund would not have at least 250 compulsory members. 

Article 231. 

Paragraph 1. General local sick funds and rural sick funds shall be established 
by decision of the union of communes. 

Par. 2. Where it is permissible for the district of a local insurance office to create 
one as well as several general local or several rural sick funds, the unions of com- 
munes affected must come to an agreement thereon. If they can not agree, the 
superior insurance office decides and decrees the establishment of the funds. 

Article 232. 

Where a general local or a rural sick fund is not established in proper time, the 
superior insurance office decrees its establishment. 

Article 233. 

Paragraph 1. The communes and unions of communes affected have the right 
to appeal to the highest administrative authority against the decree of the superior 
insurance office. 

Par. 2. If the final decree is not carried out within the time limit, the superior 
insurance office establishes the sick fund or authorizes the local insurance office to 
do so. • 

Article 234. 

Persons subject to insurance who do not belong to a miners' sick fund or to a special 
local or establishment or guild sick fund shall be members of the general local or 
rural sick fund of their class of occupation and of their place of employment. 

Article 235. 

Paragraph 1. Members of the rural sick funds are — 
Persons employed in agriculture. 
Servants. 

Persons employed in itinerant trades. 

Persons engaged in home-working industries and their home-working employees. 
Par. 2. Persons employed in horticulture, in cemetery establishments, in the 
care of parks and gardens, are, with reservation of article 236, paragraph 1, and arti- 
cle 237, paragraph 1, members of rural sick funds only if they are employed in parts 
of agricultural establishments. 

Article 236. 

Paragraph 1. The Federal Council may assign to the rural sick funds still other 
groups of insured persons who were not legally subject to insurance before this law 
came into force. 



workmen's insurance code of JULY 19, 1911 GERMANY. 547 

Par. 2. For its territory or for parts thereof, the highest administrative authority 
may assign to the general local eick funds individual groups of persons required to be 
insured in the rural sick funds. 

Article 237, 

Paragraph 1. If a district has no general local sick fund, the persons subject to 
insurance in local sick funds belong to the rural sick fund. 

Par. 2. If a district has no rural sick fund, the persons required to insure in the 
rural sick fund belong in the general local sick fund. 

Article 238. 

Persons entitled to insurance who desire to insure themselves voluntarily and 
who do not, according to articles 243, 244, 245, paragraph 4, and article 250, para- 
graph 2, become members of a special local or establishment or guild sick fund may, 
according to the class of their employment, join either the general local or the rural 
sick fund of their place of employment. 

iii. special local sick funds. 

Article 239. 

Paragraph 1. Where at the coming in force of this law there is in existence a 
local sick fund for one or for several branches of industry or kinds of establishments 
or for insured persons of one sex only, such fund shall be authorized as a special local 
sick fund, in addition to the general local sick fund, as long as it complies with the 
requirements of articles 240 to 242. * 

Par. 2. It may retain the benefits allowed to be granted up to the present time, 
even though they are not of the same kind and are higher than those permitted by 
article 179, provided that such fund covers its expenses without exceeding the 
maximum legal contributions. 

Article 240. 

A special local sick fund shall be authorized only if — 

1. It has at least 250 members (art. 241). 

2. Its continuance does not endanger the existence or solvency of the general 

local, and the rural sick fund of the district (art. 242). 

3. The benefits prescribed by its constitution are at least equal in value to those 

of the standard local sick fund, or are made equal within six months (art. 
259 to 263). 

4. Its solvency is permanently assured. 

5. It does not extend beyond the district of the local insurance office. 

Article 241. 

The minimum number of members shall be reckoned according to the average for 
the last three years, or if the sick fund has been in existence a shorter period, according 
to the average for this period. 

Article 242. 

Paragraph 1. The general local sick fund or the rural sick fund are especially 
considered as endangered if after the authorization of the special local sick fund the 
membership of the former funds would not reach at least 250. 

Par. 2. Until the membership of the general local sick fund or of the rural sick fund 
has reached this number, the sick funds with the smallest membership shall first be 
excluded. 

Article 243. 

To the special local sick fund belong those groups of persons subject to insurance 
for which the sick fund exists according to its constitution; ;persons belonging to these 
groups and entitled to insure themselves voluntarily may join this fund. The con- 
stitution may not enlarge the scope of the membership. 

Article 244. 

Paragraph. 1. If a special local sick fund is in existence for the industry branches 
and kinds of establishments in which the majority of the persons subject to insurance 



548 BULLETIN OF THE BUREAU OF LABOE. 

oi an establishment is employed, all persons subject to insurance employed in the 
establishment shall belong to it, and likewise the persons entitled to insure them- 
eelvea voluntarily can also join it; otherwise all of them shall belong to the general 
local sick fund. 

Par. 2. This does not affect membership in a special local sick fund operated for 
members of one sex only. 

iv. establishment sick funds and guild sick funds. 

Article 245. 

Paragraph 1. An employer may Create an establishment sick fund for each estab- 
lishment in which he employs permanently at least 150 persons subject to insurance 
and for each agricultural establishment or inland navigation establishment in which 
he employs permanently at least 50 persons subject to insurance. He may also create 
a common establishment sick fund for several establishments in which he employs 
permanently at least 150 persons altogether or in agricultural or inland navigation 
establishments at least 50 persons altogether who are subject to insurance. The per- 
sons affected who are subject to the insurance are first to be given a hearing. 

Par. 2. So far as an employer belongs with his establishment to a guild, which 
has a guild sick fund, he may not create an establishment sick fund for the employees 
subject to insurance who must belong to the guild sick fund. 

Par. 3. All persons employed in the establishment who are subject to insurance 
belong to the establishment sick fund. Article 181 is applicable where one of the 
establishments is an agricultural establishment. 

Par. 4. Persons entitled to insure themselves voluntarily, who are employed in the 
establishment, may join the sick fund as members. 

Article 246. 

Administrations of the Empire and of the federal States have the same right (art. 
245, par. 1) for their service establishments. Article 245, paragraphs 3 and 4, are 
applicable to the employees in these establishments. 

Article 247. 

In establishments which on account of their nature annually reduce their force 
regularly or shut down temporarily (seasonal industries), the minimum number (art. 
245, par. 1) must be on hand for at least two months. 

Article 248. 

An establishment sick fund may only be created if — 

1. It does not endanger the existence or solvency of existing general local sick 

funds or rural sick funds (art. 242); in this connection a sick fund is not con- 
sidered as endangered if it still has more than 1,000 members after the creation 
of the establishment sick fund; 

2. The benefits provided by its constitution are at least equal in value to those of 

the standard sick fund; 

3. Its solvency is permanently assured. 

Article 249. 

Paragraph 1. Where a building owner employs temporarily a larger number of 
workmen in a temporary construction establishment he has to create an establishment 
sick fund on decree of the superior insurance office. 

Par. 2. With the approval of the superior insurance office the building owner may 
transfer this obligation to one or more employers, who have wholly or partly under- 
taken the construction on their own account, provided that suflficient surety is given. 

Par. 3. The provisions concerning a minimum membership as well as article 245, 
paragraph 2, article 248, are here not applicable; the superior insurance office deter- 
mines the extent of the benefits. 

Par. 4. If the decree is not carried out within the term specified, the superior 
insurance office itself establishes the fund or charges the local insurance office with its 
establishment. 



workmen's insurance code of JULY 19^ 1911 — -GERMANY. 549 

Article 250. 

Paragraph 1. A guild may create a guild sick fund for the establishments of the 
members who belong to the guild. 

Par. 2. The persons subject to insurance employed in the establishment belong to 
this sick fund, so far as they are not subject to insurance in rural sick funds according 
to articles 235 and 236. Persons employed in the establishments and entitled to 
insure themselves voluntarily can also join it. 

Par. 3, Employees of an establishment, with which an employer has voluntarily 
joined a compulsory guild or for which an establishment sick fund has been created 
according to article 249, do not belong to the guild sick fund. 

Par. 4. Where a member of a guild removes his industrial establishment outside of 
the district of the sick fund, the membership of his employees subject to insurance in 
the guild sick fund ceases to exist. 

Article 251. 

Paragraph 1. A guild sick fund may only be established if — 

1. It does not endanger the existence or solvency of existing general local sick 

funds and rural sick funds (art. 242); in this connection a sick fund is not 
considered as endangered if it still has more than 1,000 members after the 
creation of the guild fund ; 

2. The benefits provided by its constitution are at least equal in value to those 

of the standard local sick fund; 

3. Its solvency is permanently assured. 

Par. 2. The committee of journeymen, the communal authority of the locality 
where the guild has its seat, the chamber of handwork, as well as the supervisory 
authority of the guild, shall be giAcn a hearing previous to the establishment of the 
fund. 

Article 252. 

Paragraph 1. The application for the approval of ah establishment or guild sick 
fund shall be directed to the local insurance office. 

Par. 2. The local insurance office shall offer to the rural sick funds and general local 
sick funds affected an opportunity to give their opinion and shall submit the applica- 
tion with an expression of its opinion to the superior insurance office. 

Article 253. „ 

Paragraph 1. Esta,blishment sick funds which have not been decreed according 
to article 249, as well as guild sick funds, may only be established with the approval 
of the superior insurance office. 

Par. 2. The superior insurance office (decision chamber) may only refuse the 
approval for establishment sick funds, with reservation of article 273, paragraph 1, 
No. 2, if the sick fund does not have the prescribed membership or if it does not meet 
the requirements of article 248. 

Article 254. 

The following are entitled to an appeal to the highest administrative authorities 
against the decision of the superior insurance office: 
The employer or the guild if the approval is refused. 

Each rural sick fund or general local sick fund affected, if the approval is granted. 
The employer, if the creation of a sick fund has been decreed according to article 
249. 

Article 255. 

Paragraph 1 . An establishment sick fund which existed before the coming into force 
of this law shall only be authorized if — 

1. It has at least one hundred members, or in the case of sick funds for agricultural 

or inland navigation establishments at least fifty members (arts. 241 and 247): 

2. The benefits provided by its constitution are at least equivalent to those of the 

standard sick fund or are made so within six months: 

3. Its solvency is permanently assured. 

Par. 2. Where a common establishment sick fund existed for establishments of 
several employers it may be authorized under the same conditions. 

Par. 3. These requirements are not applicable to establishment sick funds which 
are authorized for establishments of the Empire or federal States. 

18544°— No. 96—12 14 



550 BULLETIN OF THE BUREAU OF LABOE. 

Article 256. 

Paragraph 1. A guild sick fund which existed before the coming into force of this 
law shall be authorized, if it complies with the requirements of article 255, paragraph 1, 
Nos. 2 and 3. 

Par, 2. Where a common guild sick fund existed for several guilds it may be 
authorized under the same conditions. 

Article 257. 

An authorized establishment sick fund, or guild sick fund, may retain other and 
higher benefits permissible up to the present time than those permitted by article 
179, if the fund covers its expenses without exceeding the maximum legal contri- 
butions. 

v. controversies. 

Article 258. 

Paragraph 1. In disputes arising between sick funds, as to which of them the estab- 
lishments or parts of establishments belong, the local insurance office (decision com- 
mittee) decides. On appeal the superior insurance office decides finally. 

Par. 2. The same is applicable if the sick funds affected refuse to anyone the 
right of membership in the sick funds. 

Par. 3. Where the decision assigns establishments or parts of establishments to 
another sick fund, it shall also determine when the new insurance status comes in force. 

Par. 4. Final decisions concerning the right of membership in sick funds are bind- 
ing for all authorities and courts. 

VI. benefits of equal value. 

Article 259. 

Paragraph 1. The competent local insurance office (decision committee) decides 
whether sick fund benefits are of equal value with other benefits. 

Par, 2. Estimates of the total value of the benefits shall be made in this connection 
with due consideration of the special kind of membership of the individual sick funds. 

Par. 3. The Federal Council may determine particulars in this connection. 

Article 260. 

Benefits of the standard sick fund which have not been in force a full year shall 
not be considered ; nor shall additional benefits be considered which are only possible 
at the expense of the reserve, or by an increase of the contributions to more than 4^ 
per cent of the basic wage. 

Article 261. 

Paragraph 1 . The general local sick fund of the district shall be the standard sick 
fund. 

Par. 2. In the case of a sick fund whose district embraces those of several general 
local sick funds, the general local sick fund of its seat shall be the standard sick fund. 
A sick fund also grants benefits of equal value if it has special groups of members 
and maintains for each group benefits whose value is equal to those of the competent 
general local sick fund. 

Par. 3. In the case of agricultural establishment sick funds the rural sick fund, 
or where none has been established, the general local sick fund shall be the standard 
sick fund. 

Article 262. 

Paragraph 1. "VMiether the benefits are of equal value shall be determined e^-ery 
four years if facts are submitted which make it evident that the former determination 
is no longer correct. 

Par. 2. In the case of a newly established sick fund the local insurance office can 
take as a basis the benefits last determined of the standard sick fund. 

Article 263. 

. Paragraph 1. The local insurance office communicates its decision to the sick 
funds affected, and as far as it concerns the creation of an establishment or of a guild 
sick fund, also to the rural sick funds and general local sick funds aft'ected. 



AVOKKMEn's insurance code of JULY 19, 1911 GERMANY. '551 

Par. 2. The sick funds have the right of appeal to the superior insurance office. 
This decides finally. In special cases it may request the opinion of the accounting 
bureau of the Imperial Insurance Office before making a decision. 

VII. COMBINATION, SEPARATION, DISSOLUTION, AND CLOSING. 

1. Local and rural sich funds. 
Article 264. 

Paragraph 1. A rural sick fund established for the whole district of the local 
insurance office shall be combined with the general local sick fund of the district if 
its membership falls below 250 and does so not merely temporarily. 

Par. 2. This may be done when the local insurance office (decision committee) 
after a hearing of the employers and persons subject to insurance affected deems its 
continuance unnecessary. 

Par. 3. A general local sick fund established for the whole district of the local 
insurance office shall be combined with the rural sick fund of the district if its mem- 
bership falls below 250 and does so not merely temporarily. 

Article 265. 

Paragraph 1. If for the district of a local insurance office there have been estab- 
lished according to article 231, paragraph 2, several general local sick funds, they 
may be combined on decision of its committees and with the approval of the com- 
munes and unions affected. 

Par. 2. In the same manner several rural sick funds established according to article 
231, paragraph 2 may be combined. 

Article 266. 

A general local or a rural sick fund shall be closed if it becomes evident that it 
should not have been establiehed. 

Article 2G7. 

A general local or a rural sick fund, created for j^arts of the district of a local insur- 
ance office, shall be closed if — 

1. Its membership falls below 250 and does so not merely temporaiily and no 

combination according to article 265 is effected, 

2. Its contributions, although they have amounted to 6 per cent of the basic 

wage (arts. 389 and 390), inclusive of other revenues, are not sufficient to 
cover the regular benefits, and in case of a local sick fund if the employer 
and the insured persons can not agree on an increase of the contributions, 
or in case of a rural sick fund if the union of communes does not furnish the 
requisite funds. 

Article 268. 

Where the district of a special local sick fund does not overlap that of the general 
local sick fund, the committees of both sick funds may decide to make the consolida- 
tion. 

Article 269. 

Paragraph 1. A special local sick fund may be dissolved on the decision of its 
committee. 
Par. 2. It shall be closed if — 

1. It does not comply with the requirements of articles 240 to 242. 

2. It becomes unable to pay its benefits according to article 267, No. 2. 

3. It becomes evident that it should not have been authorized. 

• 
2. Establishment and guild sich funds. 

Article 270. 

Several establishment sick funds for establishments of the same emplojer may on 
decision of their committees be combined into one fund. 



552 ■ BULLETIN OF THE BUREAU OF LABOR. 

Article 271. 

In the case of a change in the organization of a public administration which has 
created establishment sick funds for its establishments or services the superior insur- 
ance office, or if several superior insurance offices are affected, the highest adminis- 
trative authorities, on application and after a hearing of the administrative bodies 
of the sick funds, shall fix the districts of the sick funds in a different manner. 

Article 272. 

An establishment sick fund may be dissolved on application of the employer and 
with the approval of the sick fund committee. 

Article 273. 

Paragraph 1. An establishment sick fund shall be closed if — 

1. The establishment for which it was created ceases to exist, 

2. The employer does not provide for orderly handling of the funds and the 

accounts; the creation of a new establishment sick fund can be refused to him. 

3. It becomes evident that it should not have been established or authorized. 
Par 2. If in the case of No. 2 above, an establishment sick fund created by decree 

(art. 249) is concerned, the local insurance office may engage at the expense of the 
employer a representative for the management of the business of the fund. 

Article 274. 

An establishment sick fund not established by decree (art. 249) shall be closed if- — 

1. Its membership falls below the minimum number and this decrease is not 

merely temporary (art.. 245, par. 1, and art. 255, par. 1, No. 1). 

2. The employer with the establishment becomes a member of a voluntary guild 

or a compulsory member of a compulsory guild which has a guild sick fund. 
° ■ 3. Its benefits are not equivalent to those of the standard sick fund and can not 
be made so Within six months. 

4. Its solvency is no longer permanently assured. 

Article 275. 

An establishment sick fund created by decree according to article 249 may be closed 
by the superior insurance office. 

Article 276. 

Guild sick funds shall be combined whenever their guilds are combined. 

Article 277. 

Paragraph I. If a compulsory guild is created, and in consequence a guild is 
closed, the rights and obligations which it had relative to its guild sick fund shall 
be transferred to the compulsory guild. 

Par. 2. The fund shall be closed if the compulsory guild includes another district 
or other industry branches. 

Article 278. 

A guild sick fund may be dissolved on decision of the guild meeting after a hearing 
of the journeymen's committee and with the approval of the sick fund committee. 

Article 279. 

A guild sick fund shall be closed if — 
. 1. The guild which established it goes into liquidation or is closed, with reserva- 
tion of article 277, paragraph 1». 

2. Its benefits are not equivalent to those of the standard local sick fund and can 

not be made so within six months. 

3. Its solvency is no longer permanently assured. 

4. Orderly handling of cash funds and accounts is not provided. 

5. It becomes evident that it should not have been established or authorized. 



workmen's insurance code of JULY 19; 1911 GERMANY. 553 

3. Procedure. 
Article 280. 

The superior insurance office (decision chamber) in whose district the sick funds 
have their seat decides on the consolidation, dissolution, and closure of sick funds 
as well as on the question of separating from such funds. Where the seats of the 
sick funds affected are located in districts of different superior insurance offices, the 
highest administrative authority determines the competent superior insurance office. 

Article 281. 

The application for consolidation, separation, or dissolution is to be directed to that 
local insurance office which is competent for the sick funds affected. If their seats 
are located in districts of different local insurance offices, the superior insurance office 
determines the competent local insurance office. 

Article 282. 

Paragraph 1. Any sick fund affected may make this application; in the case of 
local or rural sick funds, the competent union of communes can also do so; in the 
case of establishment sick funds the employer may also do so, and in the case of guild 
sick funds, the guild likewise. 

Par. 2. If this is not done in due time in cases of article 264, paragraph 1, or of 
article 276, the local insurance office makes the application on its own initiative. 

Par. 3. If a sick fund must be closed, the local insurance office starts the procedure 
on its own initiative. In thp case of establishment sick funds created by decree 
it has the right to do so (art. 249). 

Article 283. 

Paragraph 1. The local insurance office gives the parties affected an opportunity 
to express themselves concerning the application. Those sick funds, to which trans- 
ferred members would have to belong in the future, are considered as affected, as well 
as the persons designated in article 282, paragraph 1. 

Par. 2. The local insurance office presents the application with the expressions of 
opinion and the amended constitution to the superior insurance office and expresses 
thereby its own opinion, so far as it has not itself caused the change. 

Article 284. 

Paragraph 1. The superior insurance office specifies in its decision the date on which 
the amendment comes in force. There must be a minimum interval of four months 
between the decision and the date specified; in the case of closure of sick funds this 
term may be shorter in urgent cases. 

Par. 2. The parties affected have the right of appeal against the decision to the 
highest administrative authority. 

Article 285. 

Paragraph 1. In the case of the consolidation of sick funds mutual agreement 
must be made between the sick funds affected according to articles 286 to 297. 

Par. 2. The highest administrative authority may determine particulars concern- 
ing the mutual agreement. 

Article 286. 

Paragraph 1. The mutual agreement shall precede the decision of the superior 
insurance office. 

Par. 2. To bring about the mutual agreement the representatives of the sick funds 
affected meet on invitation of the local insurance office under the direction of its 
representative. 

Par. 3. If an agreement is effected thereby, it shall requu'e the consent of the sick- 
fund committees affected as well as the approval of the local insurance office. The 
decision committee may decline to grant the approval for important reasons. 

Article 287. 

If no agreement is effected, or if one of the participating committees does not con- 
sent, or the features objectionable to the local insurance office are not removed, the 
local insuiance office (decision committee) takes charge of the arrangements. 



554 BULLETIX OF THE BUREAU OF LABOR. 

Article 288. 

Paragraph 1. The sick fund which receives the other assumes the rights and 
obligations of the other sick fund, so far as articles 289 to 296 do not provide other- 
wise. 

Par. 2. Article 326 is applicable where amendments to the constitution become 
necessary. 

Article 289. 

The members of the admitted sick fund who are subject to insurance become mem- 
bers of the admitting sick fund. Members who are entitled to insure themselves 
voluntarily have the right to membership in the admitting sick fund. The members 
transferred thereby continue their insurance status without interruption. 

Article 290. 

Paragraph 1. The admitting sick fund must take over the officials and employees 
of the p.dmitted sick fund under the same or equivalent conditions. 

Par. 2. The officials and employees of the fund must accept with the admitting 
sick fund similar positions corresponding to their ability. They must also content 
themselves with another employment in the service of the sick tund which is not 
obviously unsuited to their abilities. They become subject to the service rules of 
the admitting sick fund; theii* total income shall not be reduced. 

Article 291. 

Paragraph 1. The directorate of the sick fund which is to be admitted shall commu- 
nicate without delay the decision of the superior insurance office (art. 284, par. 1) to the 
physicians and dentists to which the sick fund stands in contract relations. Within 
14 days thereafter the physician or dentist may declare to the admitting sick fund 
his readiness to render service for it under the conditions which he had already agreed 
upon with the admitted sick fund, or under the terms which the admitting sick fund 
makes with its own physicians and dentists. If the admitting sick fund does not 
accept the offer without delay it must compensate the physician or dentist. If the 
physician or dentist has not declared his willingness "within 14 days, the contract 
relation may be revoked by either party, beginning from this point of time, by observ- 
ing three months' period of notice, but not sooner than the date of admission. Con- 
tractual rights to give notice at an earlier point of time are hereby not affected. 

Par. 2, This shall be correspondingly applicable for contract relations of the sick 
funds with owners and administrators of pharmacies, all classes of medical institu- 
tions, and with the persons enumerated in article 122, as also with dealers. 

Article 292, 

The representatives of the sick funds affected and the local insurance office may 
determine that an admitted sick fund shall for a maximum period of four years be 
represented in the directorate of the admitting sick fund by a specified number of 
insured persons and employers. 

Article 293. 

The fund which is to be admitted shall ascertain by a balance sheet (arts. 39, 40, 
and 261 of the Commercial Code) its net assets, and for each transferred member 
assign therefrom to the admitting sick fund an amount equivalent to the amount of 
net assets falling to each member of the admitting sick fund. 

Article 294, 

Paragraph 1, If there are still any free assets they are to be turned over to the 
admitting sick fund. 

Par, 2, If this amount is large enough the committee of the sick fund which is to 
be admitted may form thereof a special fund for the members which are to be trans- 
ferred, from which they shall receive an increase in the funeral benefit. The increase 
must not exceed the amount of the funeral benefit accoiding to articles 204 and 205, 
No. 3, 

Par. 3. The directorate of the admitting sick fund shall administer this special 
fund in accordance with the manner specified. If the last insured person transferred 
has left, the balance shall go in the reserve fund of the sick fund. 



workmen's insurance code of JULY 19^ 1911 GERMANY. 555 

Par. 4. If the admitting sick fund grants considerably higher benefits, the sick 
fund which is to be admitted has to turn over to it in advance an amount which 
according to a proper estimate will equalize the difference. 

Article 295. 

If it can be shown that the employer or the guild have made voluntary gifts to an 
establishment fund or guild sick fund which is to be admitted, they may transfer a 
corresponding part of the free assets to the benefit of a special eick fund or a special 
endo'vvment (art. 294, par. 3) for the members who are transferred. 

Article 296. 

Paragraph 1. Where a sick fund which is to be admitted does not possess the full 
per capita amounts (art. 293) or any net assets, it shall turn over only the assets on 
hand . 

Par. 2. If the balance sheet of an establishment fund or guild sick fund which is to 
be admitted shows a deficit the employer or the guild liable for these amounts must 
cover the deficit. 

Par. 3, If such a deficit becomes evident in a local or rural sick fund which is to 
be admitted, then the admitting sick fund may for one year increase the contributions 
for the insured persons admitted, by a special assessment up to the maximum legal 
amount (art. 389). 

Article 297. 

Paragraph 1. The parties affected have the right of appeal to the superior insurance 
office (decision chamber) against the mutual arrangements approved or caused by 
the local insurance office. The decision of the superior insurance office is final. 

Par. 2. So far as the appealed decision relates to financial affairs, the superior 
insurance office may ask the accounting bureau of the Imperial Insurance Office to 
express its opinion. 

Article 298. 

Paragraph 1. 3klutual arrangements between the sick funds affected also take 
place if — 

1. The districts of the sick funds are changed by a different delimitation of the 

administration districts; 

2. In a district where up to the present time no general local or no rural sick fund 

existed, a sick fund of this kind is established; 

3. A new sick fund of the same kind is separated from a general local or a rural 

sick fund; 

4. Persons belonging to the same industry branch or the same kind of establish- 

ment after a majority decision make application to be separated from an 
authorized special local sick fund; 

5. One of several establishments of an employer for which there exists a common 

establishment sick fund changes ownership and one of the employers affected 
applies for a separation ; 

6. An employer with his establishments separates from an authorized common 

establishment sick fund; 

7. A part of the members separate from a guild sick fund because the membership 

class of the guild is to be delimitated in a different manner or a compulsory 
guild is to be established; 

8. A guild makes application to sepai-ate from an authorized common guild sick 

fund. 

Par. 2. For the mutual agreement articles 286 to 297 are correspondingly applicable. 

Par. 3. In the case of unimportant changes and of article 271, a mutual agreement 
may with the consent of the sick funds affected be done away with; article 288, para- 
graph 2, and article 289 are then also correspondingly applicable. 

Article 299. 

In the case of dissolution and clasing of sick funds, their relations to others shall 
be regulated according to articles 300 to ,305. 

Article 300. 

Paragraph 1. In so far as members of a sick fund which has been dissolved oi 
closed are present, the local insurance office after a hearing of their sick fimd direc- 



556 BULLETIN OF THE BUREAU OF LABOR. 

torate, assigns them to the appropriate sick funds. The members entitled to insur- 
ance have the right of membership in the corresponding sick fund. The members 
transferred thereby continue their insurance status without interruption. Article 288, 
paragraph 2, is in such case correspondingly applicable. 

Par. 2. The superior insurance office (decision chamber) decides finally on appeals 
relating to the assignment. 

Article 301. 

Paragraph 1. The directorate of the dissolved or closed sick fund shall wind up 
the affairs of the sick fund. Until the affairs are wound up the sick fund is considered 
as in continuance as far as the purpose of the liquidation so requires. 

Par. 2. The directorate gives public notice of the dissolution or closing. The 
payment of creditors who fail to present their claims within three months from the 
notice may be refused; the notice shall call attention to this fact. Known creditors 
shall under the same reference be specially requested to present their claims. These 
provisions are not applicable to claims connected with the insurance. 

Article 302. 

Paragraph 1. The directorate of the sick fund which is being dissolved or closed 
shall without delay notify the employees, physicians, and dentists with whom the 
sick fund has contract relations of the decision of the superior insurance office (art. 
284, par. 1). The contract relation terminates within three months after the notifica- 
tion, but at the earliest with the date of dissolution or closing. The notice shall call 
attention to this fact. Contractual rights to give notice at an earlier point of time are 
hereby not affected. 

Par, 2: This is correspondingly applicable to contract relations of the sick funds 
with pharmacy owners and pharmacy administrators, medical institutions of all 
claisses, and with persons enumerated in article 122. 

, Article 303. 

Paragraph 1. If there are still any free assets after liquidation of the affairs, then 
the local insurance office, with consideration of the transfer of members, shall assign 
these assets to the sick funds. 

Par. 2. Article 295 is hereby correspondingly applicable in the case of establishment 
and guild sick funds. 

Par. 3. The superior insurance office (decision chamber) decides finally on appeals 
concerning the assignment. 

Article 304. 

Article 296, paragraph 2, is correspondingly applicable in the case of establishment 
funds and guild sick funds if the assets are not suflicient to pay off the creditors. 

Article 305. 

Paragraph 1. Where the assets of a dissolved or closed local or rural sick fund are 
not sufficient to pay the claims of the officials, the union of communes shall make up 
the deficit; the official must accept a position offered him by the union. This provi- 
sion is correspondingly applicable to the guild in the case of a guild sick fund. 

Par. 2. Article 290 is here correspondingly applicable. 

Section Four. — Constitution. 

I. membership. 

1, Beginning and termination. 

Article 306. 

The membership of persons subject to insurance begins with the date of their 
entrance in the employment subject to insurance. 

Article 307. 

The membership in the case of a newly created establishment sick fund begins for 
all persons subject to insurance employed in the establishment, with the date on 
which the sick fund comes into existence. 



WOKKMEN^S INSURANCE CODE OF JULY 19^ 1911 GERMANY. 557 

Article 308. 

The above is applicable, with reservation of article 250, paragraph 3, to employees 
subject to insurance in establishments, with which guild members belong to a guild, 
in the case of the creation of a guild sick fund or the later admission of the employer 
to the guild. 

Article 309. 

Paragraph 1. To which sick fund an insured person shall belong, who has at the 
same time several employment relations subject to insurance, shall be decided by his 
principal employment. 

Par. 2. In case of doubt, the employment relation into which he has first entered 
shall be decisive. 

Par. 3. The Federal Council may specify the particulars in such a case. 

Article 310. 

Paragraph 1. The membership of persons entitled to insurance shall begin with 
the date of their admission to the sick fund. The admission is effected by written 
or oral application to the directorate or to the office of registration (art. 319). 

Par. 2. A sickness already existing at the time of admission does not entitle to 
benefits for this sickness. If the constitution makes the right of admission dependent 
on the presentation of a medical health certificate (art. 176, par. 3), the same must 
accompany the application. 

Par. 3. Persons entitled to insure themselves voluntarily, who apply for admission, 
may be subjected to a medical examination by the sick fund. It may refuse the appli- 
cations of sick persons and such persons for whom the necessary medical health cer- 
tificates according to paragraph 2 do not suffice, this refusal to take effect beginning 
with the application. 

Article 311. 

Persons unable to work retain their membership as long as the sick fund has to 
grant them benefits. 

Article 312. 

The membership ceases as soon as the insured person becomes a member of another 
sick fund or of a miners' sick fund. 

Article 313. 

Paragraph 1, If a member who was insured on the basis of the imperial insurance 
or in a miners' sick fund at least 26 weeks in the preceding 12 months, or for at least 
6 weeks immediately previous thereto, leaves the employment subject to insurance, 
he may retain his membership in his class or grade of wages as long as he resides regu- 
larly in Germany and does not cease to be a member according to article 312. He 
may have himself transferred to a lower class or grade of wages. 

Par. 2. WTioever desires to retain his membership must notify the sick fund within 
three weeks after leaving, or in the case of article 311 after the termination of the bene- 
fits. If a member becomes ill in the second or third of these weeks, then with reser- 
vation of article 214 he has a claim to benefits only if he has given notice during 
the first week. The full payment, within the same time limit, of the contributions 
provided in the constitution is equivalent to the notification. With the approval of 
the superior insurance office the constitution may specify longer time limits. 

Article 314. 

Paragraph 1. The membership of persons entitled to insure themselves voluntarily 
ceases if they have failed twice in succession to pay the contributions on the date when 
due, and if at least four weeks have elapsed since the first of these dates. The consti- 
tution may extend this time limit to the next following day of payment. 

Par. 2. If the directorate learns on good authority that the regular total annual 
income of a member entitled to insure himself voluntarily, exceeds 4,000 marks [§952], 
it shall at once inform this mem})er that his membership has ceased. The membership 
ceases with the delivery of the notification. 



558 BULLETIIS" OF THE BUREAU OF LABOE. 

Article 315. 

If, after application in due form, a sick fund has accepted the contributions from a 
person subject to insurance, for three months in succession and without objection, it 
must recognize him as a member as long as there is no change in his employment 
status, at least until the date on which the directorate of the sick fund, in writing, 
refers him or his employer to another sick fund. 

Article 316. 

In case the other sick fund contests his right to belong to it, the old sick fund must, 
with reservation of a later refund, continue to accept provisionally the contributions 
and to grant the benefits up to the time of the decision. 

2. Registration. 
Article 317. 

Paragraph 1 . Within three days from the beginning and termination of the employ- 
ment the employers must register each person employed by them who is subject to 
membership in a local, rural, or guild sick fund at the place determined by the con- 
stitution or according to article 319. Changes in the employment status having in- 
fluence on the insurance obligation shall also be registered within three days. 

Par. 2. The registration may be omitted if the work is interrupted for a shorter 
period than one week and if the payment of contributions is kept up . The constitu- 
tion may extend the time limit for registration beyond the third day and up to the 
last working day of the calendar week. 

Par. 3. The sick fund may make an agreement with the administrations of Imperial 
or State establishments as to other methods of registration. 

Par. 4. The highest administrative authority may issue regulations regarding the 
form and contents of the registration notice. 

Article 318. 

Paragraph 1. The application must also contain the statements required l)y the 
constitution for the computation of contributions. 

Par. 2. Changes in these relations are to be reported within the time limit of regis- 
tration. 

Par. 3. In the case of a change in wages the grade of wages does not change until the 
next payment of the contribution, unless the constitution provides otherwise. 

Article 319. 

Paragraph 1. The local insurance office may establish in its district joint registra- 
tion offices for all or for several local, rural, and guild sick funds, or with the approval 
of the communal supervisory authority turn over the business of these funds to the local 
authorities. 

Par. 2. The costs shall be divided among the different sick funds in proportion to 
their annual revenues from contributions, unless the superior insurance office specifies 
a different basis. 

II. coxstitution. 

Article 320. 

Paragraph 1. Before coming into existence, each sick fund shall draw uj^ a 
constitution. 

Par. 2. It shall be drawn up in the case of — 

Local and rural sick funds, by the union of communes after a hearing of the em- 
ployers and insured persons interested; 
Establishment sick funds, by the employer or his representative after a hearing 

of the employees; 

Guild sick funds, by the general meeting of the guild with the participation of 

the journeymen's committee according to article 95 of the Industrial Code 

{Gewerbeordnung) . 

Par. 3. If a fund is not established within the time limit finally decreed (art. 233, 

par. 2, and art. 249, par. 4), the local insurance office shall draw up a constitution for it. 



WORKMEN ^S INSUEAXCE CODE OF JULY 19, 1911 GERMANY. 559 

Article 321. 

The constitution must indicate the district of the sick fund and the class of its mem- 
bers and specify the following: 

1. Name and seat of the sick fund; 

2. Nature and extent of benefits; 

3. Amount of contributions and time of payment; 

4. Composition, rights, and duties of the directorate; 

5. Composition and convocation of the committee and the method of forming 

its decisions, as also its representation in dealings with third parties in case 
of article 34G, paragraph 1; 

6. Drawing up of the preliminary budget; 

7. Drawing up and acceptance of the annual accounts; 

8. Amount of allowances according to article 21, paragraphs 2 and 3; 

9. Method of issuing public notices; 
10. Amendment of the constitution. 

Article 322. 

In the case of the local, rural, and guild sick funds the constitution must indicate 
the places for registration. 

Article 323. 

The constitution may not specify anything which contravenes the legal regulations 
or does not come within the purpose of the fund. 

Article 324. 

Paragraph 1. The constitution, as well as the amendments thereto, requires the 
approval of the superior insurance office. When it gives its approval to the constitu- 
tion, the superior insurance office shall at the same time specify when the sick fund 
comes into existence. 

Par. 2. The approval may be refused only by the decision chamber, and then only 
in case the constitution does not comply with the legal provisions. 

Par. 3. Where the law demands the approval for individual regulations of the consti- 
tution by the superior insurance office, the approval may be refused by the decision 
chamber only. The decision is final. 

Par. 4. The reasons for the refusal shall be stated. 

Article 325. 

Each member shall receive free a printed copy of the constitution and the amend- 
ments thereto; also, on application, each employer who employs meml^ers of the sick 
fund shall receive a copy. 

Article 326. 

Paragraph 1. If ^t subsequently develops that a constitution according to article 
324, paragraph 2, should not have been approved, the superior insurance office 
(decision chamber) shall decree the necessary amendment. 

Par. 2. If within one month the committee does not decide upon the amendment 
ordered by a final decree, the superior insurance office (decision chamber) shall issue 
the same with legal force. 

Par. 3. The same applies to amendments of the constitution ordered by a final 
decree, which are required by the provisions of this law. 

III. administrative bodies of the fundp. 

1 . Organization of local and rural sick funds. 

Article 327. 

The directorate and committee transact the affairs of the funds. The members of 
the committee may not belong to the directorate; if such are elected in the directorate, 
they must leave the committee. 



560 BULLETIK OF THE BUEEAU OF LABOE. 

Article 328. 

Paragraph 1. The members of the directorate elect from their own number the 
president of the directorate. 

Par. 2. Whoever receives the majority of votes, either from the group of employers 
or from that of the insured persons, is elected. 

Article 329. 

Paragraph 1. "WTien this majority can not be obtained the election is adjourned 
to another day. 

Par. 2. If also in the second session no election is effected, the directorate notifies 
the local insurance office. The latter appoints a representative who administers the 
rights and duties of the president at the expense of the sick fund until a valid election 
is effected. On appeal the superior insurance office decides finally. An employer 
may only then be appointed as representative if the majority of the group of employees 
does not object and an employee only if the majority of the group of employers does 
not object. 

Par. 3. A person employing only servants or nonpermanent workmen is not con- 
sidered an employer in the meaning of paragraph 2. 

Article 330. 

The members of the directorate of the local sick fund elect from their number in a 
joint election one or more substitutes for the president. 

Article 331. 

Paragraph 1. The representatives of the union of communes elect the president 
and the other members of the directorate of the rural sick fund, among which must be 
oiie or more substitutes for the president. One- third of these members must belong to 
the employers affected (art. 332, par. 2), and two- thirds to persons insured in the sick 
fund. 

Par. 2. The highest administrative authority may specify that the president and 
the other members of the directorate shall be elected in the same manner as the repre- 
eentatives in the committee according to article 336, paragraph 2. 

Article 332. 

Paragraph 1. One- third of the committee consists of representatives of the employ- 
ers affected and two-thirds of representatives of the insured persons. It has a maxi- 
mum number of 90 representatives. 

Par. 2. An employer is considered as affected if he has to pay contributions to the 
sick fund for his employees subject to insurance, and if he is not to be counted among 
the insured persons according to article 14, paragraph 2. 

Article 333. 

Paragraph 1. In the case of a local sick fund the employers affected who are of age 
and the insured persons who are of age elect their representatives from their own num- 
ber, and this must be done in separate elections, under the direction of the directorate. 

Par. 2. The first election after the establishment of the sick fund takes place under 
the direction of a representative of the local insurance office; later elections only where 
no directorate exists. 

Par. 3. The voting power of the individual employers shall be proportioned accord- 
ing to the number of their employees subject to insurance; the constitution may grad- 
uate it and provide a maximum number of votes. Provisions relating to graduation 
and maximum voting power require the approval of the superior insurance office. 

Article 334. 

Paragraph 1. The interval between the notice of an election (art. 333) and the 
election itself must amount to at least one month. The constitution may fix a 
longer minimum interval. 

Par. 2. The constitution may specify that the election shall take place according 
to districts or occupation groups. 



WORKMEN ^S INSURANCE CODE OF JULY 19^ 1911 — GERMANY. 561 

Article 335. 

The representatives of the employers and of the insured persons in the committee 
elect from their group in separate elections, the members of the-directorate as follows: 
The employers elect one-third, the insured persons two-thii-ds. 

Article 336. 

Paragraph 1. In the case of a rural sick fund the representatives of the union of 
communes elect representatives from the number of the employers affected and from 
the number of the insured persons in the fund. 

Par. 2. In such districts of local insurance offices in which only urban and rural 
communes exist, but not independent manor districts, marks, or march districts 
{selbstdndige Gutshezirke, Gemarkungen oder ausmdrJcische BezirJce), the State govern- 
ment may transfer the right to vote to the representatives of the individual communes 
and can specify the particulars thereto. 

Par. 3. It may be decreed for the territory or parts of territories of the federal State 
by a State law that the directorate and committee shall be elected in the same manner 
as in the case of the local sick fund. 

Article 337. 

Employers who are in arrears with the payment of contributions may be excluded 
by the constitution from eligibility and from the right to vote. 

2. Composition of cstahlishment and guild sick funds. 

Article 338. 

Paragraph 1. Article 327 is correspondingly applicable to establishment sick 
funds. 

Par. 2. The directorate and the committee consist of the employer or his represent- 
ative and of the representatives of the insured persons; the committee has a maximum 
number of 50 representatives of the insured persons. 

Par. 3. The employer or his representative is the president; he has one-half of the 
number of votes granted by the constitution to the insured persons. 

Article 339. 

The insured persons who are of age elect from their own number under the direction 
of the directorate their representatives in the committee of the establishment sick 
fund. Article 333, paragraph 2, and article 334, paragraph 1, are here applicable. 
These representatives elect from the insured persons their representatives in the 
directorate. 

Article 340. 

A person who voluntarily continues his membership in an establishment sick fund 
IS neither eligible nor has he the right to vote. 

Article 341. 

Paragraph 1. Articles 327, 332, 333, 334, paragraph 1, 335, and 337 are also appli- 
cable to guild sick funds. The guild appoints the president and his substitutes from 
the members of the directorate. 

Par. 2. If according to the constitution (art. 381, par. 2) the employers are required 
to pay one-half and the insured persons the other half of the contributions, then each 
of them is entitled to half of the representatives in the committee, and the representa- 
tives elected by the employers elect one half of the members of the directorate, and 
those elected by the insured persons the other half. 

3. Duties. 

Article 342. 
The directorate administers the fund so far as the law does not provide otherwise. 



562 BULLETIN OF THE BUREAU OF LABOE. 

Article 343 . 

Paragraph 1. The directorate is required, on demand, to give to the industrial 
supervisory officials information relating to the number and class of cases of sickness. 

Par. 2. The highest administrative authorities may specify the particulars here- 
with. 

Article 34-1. 

The directorate must permit representatives of the carriers of the accident and of the 
invalidity and survivors' insurance to inspect in the office of the sick fund during 
business hours the books and lists for the purpose of ascertaining the number, time of 
employment, and amount of wages of their insured persons. 

Article 345. 

Paragraph 1. The committee decides on all matters which the law, constitution, 
or service regulations do not assign to the directorate. 
Par. 2. To the committee is reserved — 

1. The determination of the preliminary budget. 

2. The acceptance of the annual balance sheet. 

3. The representation of the sick fund against the members of the directorate; 

4. The decision on agreements and contracts with other sick funds; 

5. The decision on the establishment of places of registration and of payment; 

6. The amendment of the constitution; 

7. The dissolution of the sick fund or the voluntary affiliation of it with other sick 

funds. 
Par. 3. Decisions according to numbers 6 and 7 need a majority both of the employ- 
ers and the insured persons. In the case of amendments to the constitution a joint vote 
is sufficient, if such are decreed according to article 326, or if they relate to benefits or 
contributions, and do not run counter to article 388 or 389. 

Article 346. 

Paragraph 1. In the case of the acquisition, sale, or mortgaging of real estate, the 
sick fund shall be represented by the directorate and the committee. 
Par. 2. The approval of the committee is necessary for— 

1. The service regulations for the employees which have been formulated or 

changed by the directorate (art. 355) ; 

2. Decisions of the directorate relating to the establishment of hospitals and ( on- 

valtescent homes. 

Article 347. 

Paragraph 1. The committee regulates through sickness regulations the registra- 
tion and control of sick persons as well as their conduct. 

Par. 2. These regulations require the approval of the local insurance office. If the 
approval is refused, the superior insurance office (decision chamber) decides finally 
on appeal. 

Par. 3. If notwithstanding a requisition of the local insurance office a sick fund 
does not submit within the time limit any sickness regulations, the superior insurance 
office (decision chamber) shall draw up such regulations and they shall be of legal 
effect. The same is applicable to amendments or additions which have been ordered 
by decree. 

" Par. 4. With the approval of the fund and under agreement regarding the costs, 
the local insurance office may assist the sick fund in the control of sick persons. The 
decision committee decides concerning this matter. If the fund declines such aid, 
the superior insurance office decides finally on appeal. 

Article 348. 

The committee specifies the method of remittance of contributions and of payment 
of benefits for members who do not reside in the district of the sick fund, and how the 
control of sick persons is to be regulated where such members are concerned. 

IV. employees and officials of the fund. 

Article 349. 

Paragraph 1. The positions of officials and those employees to whom the service 
regulations (art. 351) are applicable, and which are paid from the means of the sick 
tunds, ehall be filled in the case of sick funds by concurring decisions of both groups 
in the directorate. 



WOEKMEn's insurance code of JULY 19^ 1911 GERMAXY. 563 

Par. 2. If the groups can not agree, the decision is postponed to a later day. 
Should then no. agreement be effected, the appointment may be decided on if more 
than two-thirds of those present vote for it; such a decision requires the confirmation 
of the local insurance office. It may only be refused on the basis of such facts which 
permit the conclusion that the person proposed lacks the necessary responsibility, 
especially for an impartial discharge of his official duties, or the ability requisite for 
the position. 

Par. 3. In case of a refusal of the confirmation, the superior insurance office (deci- 
sion chamber) decides finally on appeal of the directorate. 

Article 350. 

When no decision relating to an appointment is effected, or the confirmation is 
finally refused, the local insurance office appoints temporarily at the expense of the 
sick fund the persons necessary for the discharge of the duties of the position. If the 
appointees have administered the affairs diu-ing one year, the local insurance office 
may, with the approval of the superior insurance office, appoint them permanently 
to the position, unless a valid decision relating to an appointment has meanwhile 
been effected. 

» 
Article 351. 

Paragraph 1. Service regulations must be formulated for the salaried emf)loyees 
of the sick funds who, according to State law, are not State or communal officials, or 
whose rights or duties are based on article 359. 

Par. 2. To employees who are employed only on probation, for temporary service, 
as a preparatory service, or who administer the office only incidentally without compen- 
sation, the service regulations are only applicable in so far as they expressly so pro\'ide. 

Article 352. 

The service regulations regulate the legal and the general service relations of the 
employees, especially the proof of their technical qualifications, their number, the 
class of appointment, the giving of notice or the discharge, and the determination of 
penalties. Technical qualifications must also be proved in some other manner than 
by the comj^letion of a prescribed educational course. 

Article 353. 

Paragraph 1. The service regulations must contain a scale of salaries. They shall 
regulate the following: 

1. How long in case of involuntary disability the payment of the salary shall 

continue; 

2. For what periods seniority increases of salary shall be granted ; 

3. Under what conditions a pension and survivors' relief shall be granted. 
Par. 2. They shall regulate also the requirements for promotion. 

Article 354. 

Paragraph 1. Persons subject to the service regulations are appointed by written 
contract. 

Par. 2. The giving of notice of dismissal or the discharge of such employees shall, 
with reservation of paragraph 6, only be done on the concurring decision of the em- 
ployers and insured persons in the directorate, or, in case such a decision is not effected, 
on decision of the majority of the directorate, with the approval of the presiding officer 
of the local insurance office; after 10 years of employment it may only take place for 
important reasons. 

Par. 3. Agreements relating to the right of the sick fund to give notice of dismissal 
must not place the employee in a worse position than he would be in the absence of an 
agreement according to the civil law. 

Par. 4. The giving of notice of dismissal or the discharge must not be forbidden 
in cases in which there are important reasons. 

Par. 5. Fines shall only be prescribed for not more than one month's salary. 

Par. 6. Employees who abuse their official position or their official affairs for the 
purpose of religious or political activity shall be reprimanded by the president of the 
directorate, and in the case of repetition, after they have been given an opportunity 
for a hearing, shall be discharged immediately; the discharge requires the approval 



564 BULLETIN or THE BUREAU OF LABOR. 

of the president of the local insurance office. Religious or political acti\dty outside 
of official affairs and the exercise of the right of association shall not be prevented in 
80 far as they do not conflict with the laws, and in themselves shall not be considered 
as reasons for giving notice of dismissal or for discharge . 

Article .355. 

Paragraph 1. Before formulating the service regulations the directorate shall grant 
a hearing to the employees who are of agCL 

Par. 2. In the directorate and also in the committee employers and insured per- 
sons decide separately on the service regulations. 

Par. 3. The service regulations require the approval of the superior insurance 
office. The directorate must designate to the superior insurance office those provisions 
of the service regulations on which the two groups in the directorate or committee 
have not agreed and must give a statement of the relative vote. The superior insur- 
ance office decides on these provisions; in other respects it only may refuse the ap- 
proval of the service regulations, if there is an important reason, especially if the num- 
ber or the salaries of the employees are in striking disproportion to their duties. 

Par. 4. If the approval is refused, the highest administrative authority decides 
on appeal. . 

Par. 5. "The same is applicable to changes in the service regulations. 

Article 356. 

If, notwithstanding a requisition, a sick fund does not submit within the specified 
time limit any service regulations, the superior insurance office shall draw up the same 
and they shall have legal effect. The same is applicable to amendments or additions 
ordered by a decree. 

Article 357. 

Paragraph 1. Decisions of the directorate or of the committee running counter to 
the service regulations shall be challenged by the president of the directorate through 
an appeal to the supervisory authority; the appeal effects a stay. 

Par. 2. If the directorate or its president does not make use of the right of giving 
notice of dismissal or of discharge against an employee, notwithstanding that there is 
a serious reason therefor, the local insurance office may require them to do so. On 
appeal of the directorate, the superior insurance office (decision chamber) decides 
finally on the decree. 

Par. 3. A provision of the employment contract running counter to the service 
regulations is invalid. 

Article 358. 

Paragraph 1. The local insurance office (decision committee) decides in disputes 
relating to the service matters of employees subject to the service regulations. On 
appeal the superior insurance office decides finally. The imperial decrees (art. 35, 
par. 2) regulate the particulars concerning the procedure of discharge of an employee 
on account of contravention of the service regulations or in the case of article 354, 
paragraph 6, in accordance with the provisions of the imperial law for officials con- 
cerning the writ of accusation, admission of counsel for the defendant, hearing of the 
defendant, oral procedure, and passing upon the evidence. 

Par. 2. The following special provisions are applicable to pecuniary claims. 

Par. 3. The decision of the superior insurance office must precede the suit. Suit 
may only be brought within one month after the delivery of the decision of the superior 
insurance office; the time limit is a peremptory time limit in the meaning of article 
223, paragraph 3, of the Code of Civil Procedure. 

Par. 4. Appeal to the regular courts is excluded where the determination of fines 
is concerned. The regular courts must accept the decisions of the insurance authori- 
ties on the question whether the period of dismissal having been observed, a notice 
of dismissal may be given for an important reason (art. 354, par. 2). _ ^ 

Par. 5. Execution of the valid decisions of the insurance authorities takes place 
according to book eight of the Code of Civil Procedure. 

Article 359. 

Paragraph 1. The directorate of a local, a rural, or a guild sick fund may, with the 
approval of the superior insurance office, employ officials for life or according to the 
State laws without recall or with the right to pension. 



WOKKMEN^S INSURANCE CODE OF JULY 19^ 1911 GERMANY. 565 

Par. 2. In the case of local, rural, or guild sick funds with over 10,000 insured per- 
sons the superior insurance office may, after a hearing of the sick fund, decree that at 
least the business directors shall be employed in this manner. 

Par. 3. The directorate may appeal against such a decree to the highest adminis- 
trative authority. 

Par. 4. The State government may assign to officials appointed in this manner the 
rights and duties of State or communal officials. 

Par. 5. Article 357, paragraph 2, is applicable to the officials of the funds. 

Par. 6. No provision shall be made granting preference in the filling of vacancies 
to persons in possession of a certificate entitling the holder to a civil-service position 
(soldiers entitled to civil employment). 

Article 360. 

Where, according to the State laws, the officials of communes and other public cor- 
porations, who are not appointed for life or without recall, are obliged to join a pen- 
sion fund under State control or a similar institution, the State government may 
extend the provisions in force for this purpose to the corporations and their employees 
to the local, rural, and guild sick funds and their employees. 

Article 361. 

Article 23, paragraph 1, is correspondingly applicable to managing officials or em- 
ployees. 

Article 362. 

Paragraph 1. In the case of establishment sick funds the employer appoints at 
his expense and on his own responsibility the persons necessary to conduct the affairs. 
Article 24 is correspondingly applicable to these persons. 

Par. 2. Employees of establishment sick funds, who abuse their official position or 
their official affairs for the purpose of religious or political activity, shall be repri- 
manded by the president of the directorate, and in case of a repetition shall be imme- 
diately discharged, after having been given an opportunity for a hearing; article 357, 
paragraph 2, is then correspondingly applicable. 

V. administration of resources 

Article 363. 

Paragraph 1. The resources of the sick fund shall only be used for the benefits 
provided by the constitution, for the accumulation of the reserve, for the adminis- 
tration expenses, and for the general purposes of the prevention of sickness. 

Par. 2. On the authorization of the highest administrative authorities it is per- 
missible to use the resources of the sick fund for the attending of meetings which 
shall serve the legal purposes of sickness insurance. 

Article 364. 

Paragraph 1. The sick fund shall accumulate a reserve equal to the minimum 
amount of one year's expenses computed according to the average of the last three 
years and shall maintain it at this amount. For this purpose it shall use the parts of 
contributions paid by employers for members of substitute sick funds (art. 517, par. 
2), and at least one-twentieth of the annual amount of the other contributions of the 
fund. 

Par. 2. In the case of establishment sick funds created by decree, the constitution, 
with the approval of the superior insurance office, may make other provisions. 

Article 365. 

Securities of the sick fund which are not merely an investment of operating resources 
which are temporarily available, shall be kept in the custody of the union of communes, 
unless the local insurance office provides otherwise. 

Article 366. 

The Federal Council shall specify the method and form of accounting. 
18544°— No. 96—12 15 



566 BULLETIN OF THE BUEEAU OF LABOR. 

Article 367. 

Paragraph 1. The sick fund must submit to the local insurance office a balance 
sheet and also statements relating to — 

1. Members. 

2. Cases of sickness, cases calling for other benefits, and deaths. 

3. Contributions received. 
. 4. Benefits granted. 

5. Kind and amount of reimbursement for medical treatment. 

6. Number of physicians, specialists, dental surgeons, dental assistants, owners 

and administrators of pharmacies, and other such persons selling medicines, 

who give their services to the sick fund. 
Par. 2. The Federal Council shall specify the model forms and the time limits for 
transmitting them; it ma}^ extend the contents of the reports. The reports and bal- 
ance sheets shall be compiled uniformly at least every four years for the Empire. 

vi. relation to physicians, dentists, hospitals, and pharmacies. 

Article 368. 

The relations between sick funds and physicians shall be regulated by written con- 
tract; the sick fund may, with the exception of urgent cases, decline to make pay- 
ments to other physicians. 

Article 369. 

In so far as it would not seriously add to the expenses of the sick fund, its members 
shall be given the right to choose from at least two physicians. The insured person 
has free choice among the physicians appointed by the sick fund if he assumes him- 
self the additional costs. But the constitution may specify, however, that the person 
under treatment may not change the physician during the same case of insurance or 
during the fiscal year without the approval of the directorate. 

Article 370. 

Paragraph 1. If the providing of medical care by a sick fund is seriously endan- 
gered by the fact that the sick fund can not make contracts on reasonable conditions 
with a sufficient number of physicians, or because the physicians do not observe the 
contract, the superior insurance office (decision chamber) may authorize the sick 
fund on its application and subject to revocation to grant in place of the care of patients 
and other necessary medical treatment a pecuniary benefit up to two-thirds of the 
average amount of their legal pecuniary sick benefit. 

Par. 2. The superior insurance office (decision chamber) may at the same time 
specify — 

1. How the condition of the person who shall receive the benefits may be proved 

by other means than by medical certificates. 

2. That the sick fund may discontinue or withhold the benefits until sufficient 

proof is submitted. 

3. That the obligation of the sick fund to pay benefits ceases if sufficient proof is 

not submitted within one year after the claim becomes due. 

4. That the sick fund may direct those to whom it has to grant medical treatment 

to go to a hospital, even if the conditions of article 184, paragraph 3, do not 
exist. 
Par. 3. The sick-fund directorate has the right of appeal to the highest adminis- 
trative authority against the decision of the superior insurance office (pars. 1 and 2). 

Article 371. 

Paragraph 1. The constitution may authorize the directorate to grant hospital 
treatment only in certain hospitals, and where the sick fund must grant hospital 
treatment, to decline to make payments to other hospitals, with the exception of 
urgent cases. 

Par. 2. Hospitals intended exclusively for charitable or general welfare purposes 
or established by public unions or corporations, and ready to give hospital treatment 
on the same conditions as the hospitals designated in paragraph 1, may only be ex- 
cluded for an important reason and with the approval of the superior insurance office. 



WOKKMEn's insurance code of JULY 19, 1911 GERMANY. 567 

Article 372. 

Paragraph 1. If the medical treatment or hospital care of a sick fund does not 
satisfy the legal demands of the sick persons, the superior insurance office may, with 
reservation of article 370, decree at any time that these benefits shall be granted by 
other physicians or hospitals; the fund shall first be given a hearing. 

Par. 2. This decree shall only apply so long as its purpose requires, and must have 
the approval of the superior insurance office if it is to be in force for more than one 
year. 

Article 373. 

Paragraph 1. If the decree is not carried out within the time limit specified, the 
superior insurance office may itself take the necessary measures at the expense of the 
sick fund. Contracts already made by the sick fund with physicians and hospitals 
are not affected. 

Par. 2. The fund may appeal against these decrees and measures within one week 
to the highest administrative authority. 

Article 374. 

Articles 368, 372, and 373 are correspondingly applicable in regard to the relations 
between hospitals and dentists. 

Article 375. 

Paragraph 1. Within the territory of the sick fund, or with the appro v?l of the 
local insurance office outside of it, the constitution may authorize the directorate to 
make preferential contracts with individual owners or administrators of pharmacies 
for the furnishing of medicines, or in the case of medicines which are for sale in the 
open market, also with other persons selling them. All owners and administrators of 
pharmacies in the territory of the sick fund may join in such agreements. The direc- 
torate may then, with the exception of urgent cases and with reservation of article 
376, paragraph 3, decline to make payments for medicines furnished by other parties. 

Par. 2. Articles 372 and 373 are correspondingly applicable, if the supply of medi- 
cines granted by a sick fund does not satisfy the legal demands of the sick persons. 

Article 376. 

Paragraph 1. The pharmacies shall grant to sick funds a discount on medicines 
from the tariff prices for medicines. The highest administrative authority deter- 
mines its rate ; it may make it dependent for the individual pharmacies on a specified 
minimum consumption by the sick fund. 

Par. 2. The superior administrative authority determines, with due consideration 
of local conditions and of the usual retail prices, the maximum prices of such common 
medicines which may be obtained (in the retail trade) without physicians' prescrip- 
tions. These maximum prices must not exceed the amount based on paragraph 1. 
The highest administrative authority may decree the particulars in this connection. 

Par, 3. If the beneficiaries procure the medicines designated in paragraph 2 from a 
pharmacy at a price not exceeding the specified price, the superior administrative 
authority may decree that the sick fund shall not decline payment for the reason 
that it has agreed on lower prices with persons who are not owners or administrators of 
pharmacies. 

Section Five — Supervision. 

Article 377. 

Paragraph 1. With reservation of articles 372 to 375 the local insurance office exer- 
cises the supervision over the sick funds. It extends also to the observation of the 
service and sickness regulations. 

Par. 2. If the appeal against a decree of the local insurance office is based on the 
fact that the decree has no legal foundation and injures a right of the appellant or 
imposes on him an unwarranted liability, the superior insurance office (decision cham- 
ber) shall decide thereon. 

Par. 3. In the case of establishment sick funds for imperial or State establishments, 
the highest administrative authority may transfer to other authorities the duties of the 
local insurance office which do not come under the competence of the judgment com- 
mittee. 



568 BULLETIN OF THE BUREAU OF LABOE. 

Article 378. 

As a representative of the sick fund, the local insurance office itself or through an 
authorized agent may bring forward claims of an establishment sick fund against the 
employer resulting from his administration of the resources and keeping of the accounts. 

Article 379. 

Paragiiaph 1. So long as the persons entitled to vote refuse to elect the adminis- 
trative bodies of the sick fund, the local insurance office (decision committee) shall 
appoint the members or the substitutes. 

Par. 2. So long as the directorate, or its president, or the committee, refuse to per- 
form the duties they are charged with, the local insurance office shall execute them 
itself, or through an authorized agent, at the expense of the sick fund. 

Section Six — Raising op the Funds. 

I. contributions. 

Article 380. 

The means for the sickness insurance shall be collected from the employers and the 
insured persons. 

Article 381. 

Paragraph 1. The persons subject to insurance must pay two- thirds, their em- 
ployers one-third of the contributions. 

Par. 2. In the case of guild sick funds the constitution may specify that the em- 
ployers must pay one-half and the persons subject to insurance the other half of the 
contributions. Where this is specified by an amendment to the constitution, the 
decision requires a majority of the representatives of the employers as also those of the 
insured persons. 

Par. 3. Persons entitled to insure themselves voluntarily must pay the whole of 
the contributions. 

Article 382. 

The constitution may permit insured persons who temporarily draw lower wages 
to remain insured in their old higher class of wages, if they themselves undertake to 
pay the additional amount of the contributions or if the employer consents to such 
higher rating. 

Article 383. 

Paragraph 1. In case of disability no contributions are to be paid for the duration 
of the sickness. 

Par. 2. The same is applicable during the receipt of the maternity and pregnancy 
benefits. 

Article 384. 

Paragraph 1. The constitution may graduate the rates of the contribution accord- 
ing to the branches of industry and classes of employment of the insured persons, and 
provide for a higher proportion of the part paid by the employer in the case of indi- 
vidual establishments in so far as the risk of sickness is considerably higher. 

Par. 2. Sick funds with family benefits may collect from the insured persons with 
dependent families an additional contribution, which shall be .specified by the con- 
stitution in a general manner. Articles 381, 382, and 385 to 403 are not applicable 
hereto. 

Par. 3. Where the constitution does not as a general rule allow sick benefits for 
Sundays and holidays, it may correspondingly raise the contributions for members 
for whom Sundays and holidays are working days. 

Par. 4. Provisions of this kind require the approval of the superior insurance office. 

Par. 5. If the directorate decrees higher contributions for an establishment, the 
employer has the right of appeal to the local insurance office. In the legal procedure 
the superior insurance office decides finally. 

Article 385. 

Paragraph 1. The contributions shall be fixed in a percentage of the basic wage 
in such a manner that, inclusive of the other revenues, they shall be sufficient for the 
permissible expenses of the sick fund. 



workmen's insurance code of JULY 19, 1911 GERMANY. 569 

Par. 2. The sick fund shall not collect contributions for other purposes. 

Par. 3. Where doubts arise whether the constitution or its amendment fixes the con- 
tributions according to paragraph 1, the superior insurance office shall have the con- 
tributions examined by experts before approving them. If they are not sufficient, the 
approval shall depend on an increase of the contributions or in a reduction of the 
benefits to a rate not lower than the regular benefits. 

Article 386. 

At the establishment of the sick fund the contributions may be fixed at more than 
4^ per cent of the basic wage only if it is necessary in order to provide the regular 
benefits. 

Article 387. 

If the receipts of the sick fund do not cover its expenses, inclusive of the amounts for 
the reserve, benefits shall be reduced to a rate not lower than the regular benefits or 
the contributions shall be increased, by an amendment to the constitution. 

Article 388. 

The contributions may be increased to more than 4| per cent of the basic wage only 
for the purpose of providing the regular benefits, or on concurring decision of employers 
and insured persons in the committee. 

Article 389. 

Paragraph 1. If in the case of a local sick fund contributions as high as 6 per cent 
of the basic wage do not cover the regular benefits, then the contributions may be 
further increased only on a concurring decision of the employers and of the insured 
persons in the committee. 

Par. 2. Otherwise the superior insurance office shall order, with reservation of 
article 268, the consolidation of the fund with other local sick funds. If this should 
not be possible, or if notwithstanding the consolidation the contributions are not 
sufficient to provide the regular benefits, the union of communes must pay from its 
own resources the necessary assistance. As long as this is done it may place the office 
of president of the sick fund in the hands of a representative. 

Article 390. 

If in the case of a rural, an establishment, or a guild sick fund contributions to the 
amount of 6 per cent of the basic wage do not cover the regular benefits, the union of 
communes, with reservation of article 265, paragraph 2, in the case of rural sick funds, 
or the employer in the case of establishment sick funds, and the guild in case of guild 
sick funds, must provide the necessary assistance from its own resources. As long as 
this is done, in the case of a rural sick fund the union of communes can place the 
office of president of the sick fund in the hands of a representative. 

Article 391. 

Paragraph 1. If to maintain or restore its solvency, a sick fund must quickly 
increase its revenues or reduce its expenses, the local insurance office (decision com- 
mittee) may temporarily provide, until new regulations as provided by the constitu- 
tion are made, that as far as necessary the contributions may be increased and the 
benefits reduced to not lower than the regular benefits; current benefits remain undis- 
turbed. 

Par. 2. On appeal the superior insurance office decides finally. 

Article 392. 

If the revenues of a sick fund exceed the expenses and the reserve has reached 
double the amount of its legal minimum, the contributions shall be reduced or the 
benefits shall be increased by means of an amendment to the constitution. 

ii. payment op the contributions. 

Article 393. 

The employers must pay the contributions for their employees subject to insurance 
on the days fixed by the constitution. The days for payment may at the most be 
one month apart. On the same days the persons entitled to insure themselves volun- 
tarily must pay their contributions. 



570 BULLETIN OF THE BUREAU OF LABOK. 

Article 394. 

Paragraph 1. At the time of the payment of wages, the persons subject to insurance 
must permit their share of the contribution to be deducted from the cash wages. Only 
in this manner may the employers reimburse themselves for the shares of the contri- 
bution. 

Par. 2. The highest administrative authority may specify in what manner the 
share of the contributions of persons subject to insurance is to be refunded from their 
remuneration, if the same consists only of payments in kind or is paid by third parties. 

Article 395." 

Paragraph 1. The deductions for the share of contributions are to be divided 
evenly among the wage periods in which they fall. The partial amounts may without 
imposing an additional burden on the insured persons be rounded off to amounts of 
even 10 pfennigs [2.38 cents]. 

Par. 2. If deductions were not made for a wage period, they may be deducted 
only at the wage payment of the next wage period, if the contributions are not paid 
at a later time without any fault on the part of the employer. 

Par. 3. In the case of servants payments on account are not considered as wage 
payments. 

Article 396. 

Paragraph 1. If the insured person is at the same time in several employment 
relations subject to insurance, the employers are collectively liable for the contribu- 
tions. 

Par. 2. On application of one of the employers the local insurance office shall 
apportion the contributions. 

Article 397. 

Paragraph 1. The contributions must be paid continuously until notice of leaving 
has been given according to the regulations. 

Par. 2. If the insured person leaves an employment between two pay days, and 
if due notice of his leaving has been given, the contributions paid in advance shall 
be refunded in proportion to the time. 

Par. 3. In case of establishment sick funds the contributions must be paid con- 
tinuously until the termination of membership. 

Par. 4. The constitution can specify that contributions shall always be collected 
and refunded for full we^ks. 

Article 398. 

Paragraph 1. On application of a local, a rural, or a guild sick fund, as also on 
application of members of the administrative bodies of an estabUshment sick fund, 
the local insurance office (decision committee) may decree, with the right of revocation, 
that employers who are in arrears with the payment of contributions, and who in a 
process of execution have shown themselves to be bankrupt, shall pay their own 
share of the contributions only. The persons subject to insurance employed by 
them shall then themselves pay their share of the contributions on pay days. 

Par. 2. Against this decree the employer may appeal to the superior insurance 
office (decision chamber). It decides finally. 

Article 399. 

The decree must designate the employer to whom it is applicable, together with his 
name, residence, and place of business. He shall be notified of it in writing, as also 
the police authorities of his place of residence and of his place of business, if it be 
elsewhere. If the employer changes his residence or his place of business, the police 
authorities shall notify the competent authorities of his new place of residence or 
place of business. 

Article 400. 

The employer shall notify the persons subject to insurance employed by him of the 
decree by placarding it permanently in the work places, and at each wage payment 
call their attention to the fact that they themselves must pay their share of the con- 
tributions. 



workmen's insurance code of JULY 19, 1911 GERMANY. 571 

Article 401. 

The local insurance office (decision committee) revokes the decree as soon as it 
has proof by the certificate of the sick fund directorate that all arrears and overdue 
obligations of the employer to the sick fund have been discharged. 

Article 402. 

So long as the decree concerning employers who in a process of execution have 
been shown to be bankrupt has not been issued, they must make the deduction from 
the wages and must pay the amoxmt, at the latest within three days, to the sick fund 
entitled thereto. 

Article 403. 

The constitution of a local, a rural, or a guild sick fund may specify under what con- 
ditions the sick fund must demand advances from the employers. 

Article 404. 

Paragraph 1. On application of the sick funds affected the local insurance office 
(decision committee) may specify that the joint places of registration shall also be 
pay offices to accept contributions and pay benefits. 

Par. 2. With the approval of their supervisory "authorities, it may transfer to the 
local authorities the business of the pay offices. 

Par. 3. The local insurance office may, with their consent and with an agreement 
as to the costs, assist the sick funds in the collection of the contributions. 

Par. 4. The communal supervisory authority may appoint, after a hearing of the 
sick fund, the officials conducting the business as officials to make compulsory collec- 
tions. 

Article 405. 

Paragraph 1. If a dispute arises between the employer and his employees relating 
to the computation and apportionment of their share of the contributions, the local 
insiKance office (decision committee) decides finally. 

Par. 2. If a dispute arises between an employer, or an insured person, or a person 
insured up to the present, or a person to be insured, and a sick fund relating to the 
insurance status or the liability to make, pay, or refund contributions, then the 
local insurance office (decision committee) shall decide and on appeal the superior 
insurance office shall decide finally. 

Par. 3. Final decisions as to the insurance status are binding for all authorities 
and courts. If the membership of an insured person has been definitely declined 
by all sick funds affected because they hold that he should belong to anothar of 
them, the sick fund to which he properly belongs shall be determined on application 
by the local insurance office (decision committee) or the superior insurance office 
(decision chamber) having jmisdiction of the funds, or in the absence of such by the 
highest administrative authority, without being bound by previous decisions. 

Section Seven. — Federations op Funds — Sections. 

Article 406. 

Paragraph 1. On concurring decision of their committees, sick funds may com- 
bine in a federation of funds, if the seat is in the district of the same local insurance 
office. 

Par. 2. With the approval of the superior insurance office (decision chamber), or, 
if it is refused, with the approval of the highest administrative authority, a federation 
of funds may embrace districts or parts of districts of several local insurance offices. 
The superior insurance office specifies finally which local insurance office shall exercise 
supervision 

Article 407. 

The federation of funds may do the following in common for the affiliated funds : 

1. Appoint employees and officials; 

2. Prepare or conclude contracts with physicians, dental surgeons, dental assist- 

ants, owners and administrators of pharmacies, or other dealers in medicines, 
with hospitals, as also for the furnishing of therapeutic appliances and other 
necessities for the care of patients; 



672 BULLETIN OF THE BUREAU OF LABOE. 

3. Supervise the patients according to uniform principles; 

4. Establish and conduct medical institutions and convalescent homes; 

5. Defray the expenses for benefits up to one-half, or within this limit defray the 

expenses for specified kinds of sickness or cases of sickness up to the whole 
amount. 

Article 408. 

Paragraph 1 . A constitution for the federation of funds shall be formulated by a 
concurring decision of the interested committees of the sick funds. It requires the ap- 
proval of the superior insurance office. Article 324, paragraphs 2 and 4, is applicable 
to the refusal of the approval. 

Par. 2. Articles 4 to 34 are here correspondingly applicable. 

Article 409. 

The constitution must specify the following: 

1. Name and seat of the federation and of the affiliated funds; 

2. Object of the federation; 

3. Composition, election, rights, and duties of the directorate, and of the elected 

committee, if there be such; 

4. Determination of the preliminary budget and acceptance of the annual balance 

sheet; 

5. Assessment of the contributions for covering the expenses of the federation, as 

also the assessing and accounting of the subsidy, if such be necessary; 

6. Amendment of the constitution. 

Article 410. 

The provisions applicable to sick funds contained in articles 368 to 376 are also cor- 
respondingly applicable to federations of funds. 

Article 411. 

Paragraph 1, At the end of the fiscal year each sick fund may withdraw from the 
federation if it has submitted to the directorate a notice of withdrawal at least six 
months in advance. 

Par. 2. The committees of the funds affected may dissolve the federation by con- 
curring decision. 

Par. 3. The fund which has withdrawn is collectively liable for the obligations of 
the federation existing at the time of its withdrawal. Claims against the fund on 
account of these liabilities lapse in two years after the withdrawal, so far as the claim 
against the federation is not subject to a shorter limitation; if the claim against the 
federation matures only after the withdrawal, the period of limitation begins with 
the date when it becomes due. 

Article 412. 

Paragraph 1. At the withdrawal of a fund or at the dissolution of the federation, 
each withdrawing fund receives a share of the net assets (art. 293), which corresponds 
for the last fiscal year to the proportion of its contributions to the total contributions 
to the federation. In the case of a deficit, each withdrawing fund shall contribute 
in the same proportion. 

Par. 2. Other arrangements may be made by the constitution or by mutual agree- 
ment. 

Article 413. 

Paragraph 1. The local insurance office has the supervision of the federation. 
Articles 377 to 379 are here correspondingly applicable. 

Par. 2. Articles 349 to 361 are correspondingly applicable to the employees of the 
federation; also articles 363 and 365 to the administration of the resources. The 
Federal Council may specify how far articles 366 and 367 are applicable. 

Par. 3. The local insurance office (decision committee) decides in case of a dispute 
between the federation and the different funds in regard to federation relations. 

Article 414. 

For combinations of funds of other iinds, to promote the general objects of sickness 
relief, the resources of the funds shall only be used with the approval of both groups 
in the directorate. With the approval of the highest administrative authority, such 
combinations of funds may also undertake some of the special duties designated in 
article 407. 



WOBKMEN^S INSURANCE CODE OF JULY 19, 1911 — GERMANY, 573 

Article 415. 

With the approval of the superior insurance office, sick funds may establish sections 
for specified groups of their members or for specifi^ed districts and assign to them a 
part, but at the most two-thirds of the revenues and benefits. Particulars relating 
to organization, administration, duties, and competence, shall be specified in the 
constitution. 

Section Eight. — Special Occupations. 

i. general provision. 

Article 416. 

The provisions of this book are applicable together with the special provisions of — 
Articles 417 to 434, to persons employed in agriculture; 
Articles 435 to 440, to servants; 

Articles 441 to 458, to persons employed temporarily; 
Articles 459 to 465, to persons employed in itinerant trades; 

Articles 466 to 493, to persons engaged in home industries and to their home- work- 
ing employees; 
Article 494, to apprentices. 

ii. agriculture. 

Article 417. 

The following persons are considered as employed in agriculture: 

1. If they are employed in agricultural subsidiary establishments (Arts. 918 

to 921). 

2. If they are employed in agricultural establishments which are subsidiary 

establishments of an industrial establishment, and according to article 540 
are not insured in an industrial accident association (Berufsgenossenschaft), 
by the constitution of the same. 

Article 418. 

Paragraph 1. Whoever in case of sickness has a legal claim for relief against his 
employer which is equivalent to the benefits of the competent sick fund shall on 
application of the employer be exempted from the insurance obligation. 

Par. 2. The prerequisite is that — 

1. The employer defrays the entire relief from his own resources; 

2. His solvency is assured; 

3. That he makes application for all of his agricultural employees in so far as they 

are obligated by contract for at least two weeks' regular work. 
Par. 3. Article 175 is hereby applicable with the provision that the superior 
insurance office in place of the local insurance office decides finally. 

Article 419. 

Paragraph 1. The exemption is in force only for the duration of the labor contract. 
It ceases earlier if the employer registers all his exempt employees at the sick fund, 
or if the local insurance office itself, or on application of an exempt employee, deter- 
mines that the employer is insolvent. The sick fund is not liable for benefits in cases 
of insurance which have already occurred when the exemption expires or which occur 
in the case of article 214 in the first three weeks after this lapse; this does not affect 
the claim of the person exempted against his employer. 

Par. 2. Article 313 is applicable to the persons exempted, but shall be construed as 
if these persons had been members of the sick fund up to the expiration of the exemp- 
tion; articles 195 to 200, and 224, are here also correspondingly applicable. 

Article 420 

Paragraph 1. On application of the employer the contributions to the fund shall 
be correspondingly reduced for the duration of the labor contract, and the claim of 
the insured persons to a pecuniary benefit shall cease, if it is shown that at least — 

1. The labor contract has been concluded for one year; 

2. The insured persons are in receipt — 

Either for the whole year, of payments in kind equivalent to 300 times the 

daily pecuniary benefit provided by the constitution. 
Or for each working day, of a payment equivalent to this pecuniary benefit; 

3. That they have a legal right to these benefits for the duration of the labor 

contract. 



574 BULLETIN OF THE BUREAU OF LABOR. 

Par. 2. If the insured person is sick and incapacitated for work beyond the duration 
of the labor contract, then his claim to a pecuniary benefit shall again come into force. 
The employer must refund to the sick fund the pecuniary benefit. Article 28 is cor- 
respondingly applicable. 

Par. 3. The contributions shall be reduced by the constitution with the approval 
of the superior insurance office, according to the relation of the pecuniary benefit to 
the value of the other benefits of the fund. 

Article 421. 

With the approval of the superior insurance office, the constitution may reduce the 
pecuniary benefit for insured persons who according to their labor contract are enti- 
tled in cases of sickness to benefits of less amount than those designated in article 
420, paragraph 1, number 2; the contributions shall be correspondingly reduced. 

Article 422. 

Paragraph 1. So far as the employer does not grant the relief (arts. 418 and 419), 
the sick fund shall on application of the person exempted grant the benefits provided 
by the constitution; if the employer does not furnish the benefits required by the 
contract (arts. 420 and 421), the fund must pay a pecuniary benefit to the sick mem- 
ber on application. 

Par. 2. The employer must reimburse the sick fund for what it has paid. Article 
28 is correspondingly applicable. 

Par. 3. In disputes over the claim to reimbursement (par. 2, and art. 420, par. 2), 
the local insurance office decides in judgment procediure. 

Article 423. 

Paragraph 1. With the approval of the superior insurance office, the constitution 
of a rural sick fund may specify that insured persons, who on the basis of the imperial 
insTU-ance have been granted a permanent yearly pension amounting to 300 timea 
the daily pecuniary benefit provided by the constitution, shall receive no. pecuni- 
ary benefit. 

Par. 2. The contributions of these members shall be correspondingly reduced 
(art. 420, par. 3). 

Par. 3. With the approval of the superior insurance office, the constitution may 
specify a lower basic wage than the local wages for employees who are partially and 
permanently disabled. 

Article 424. 

With the approval of the superior insurance office, and as a general measure or for 
specified groups of insured persons, the constitution of a rural sick fund may reduce 
the pecuniary benefit to one-fourth of the local wages for the period from October 1 
to March 31, or for a part of this period; it must reduce the contributions for the same 
period correspondingly or increase the pecuniary benefit within the limits permitted 
for the remainder of the period. The same is correspondingly applicable to house 
money. 

Article 425. 

The provisions of articles 420 to 423 applicable to the pecuniary benefit are also 
applicable to the other cash benefits of the fund with the exception of the funeral 
benefit. 

Article 426. 

For the territory of the federal State or for parts of it the highest administrative 
authority may permit the rural sick funds to introduce extended sick treatment for 
sick persons incapacitated for work. 

Article 427. 

The constitution may contain such provisions only if in the district of the rural 
sick fund — 

1. The productive capacity of the agricultural employees or their employers 

would be impaired otherwise; 

2. The presence of a sufficient number of hospitals and similar medical institu- 

tions assures the execution of the extended sick treatment. 



WOKKMEn's TNSUKAITCE code of JULY 19, 1911 GERMANY. 575 

Article 428. 

Such provision requires the approval of the superior insurance office; in districts 
in which agricultural employees are already insured according to the general provi- 
sions of this book or according to the sickness insurance law the approval required is 
that of the highest administrative authority. 

Article 429. 

Extended sick treatment consists of medical treatment and maintenance in a hos- 
pital or a similar medical institution in the place of the care of patients and of the 
pecuniary benefit. This extended benefit is considered as a regular benefit. 

Article 430. 

Paragraph 1. A disabled sick person need not be removed to a medical institution 
if, according to a medical opinion, it would not promote his cure. 

Par. 2. If through no fault of his own the disabled sick person is not taken to a 
medical institution, then the rural sick fund must grant the legal sick relief. The 
constitution may specify that under the conditions mentioned in articles 420 and 421 
the pecuniary benefit shall not be paid entirely or partly, but shall be credited to 
the contributions of the insured persons which will become due at the next time of 
payment. 

Article 431. 

As long as the sick person declines hospital treatment in a case where such treat- 
ment requires his own consent, according to article 184, he has only a claim to medical 
treatment and to half the pecuniary benefit if he has up to the present supported 
his relatives either wholly or principally with his earnings, unless the constitution 
provides otherwise. 

Article 432. 

Paragraph 1. The constitution shall specify in the case of extended sick treat- 
ment whether and in what amount house money is to be granted in addition to the 
hospital treatment. 

Par. 2. Where the constitution prescribes extended sick treatment it may at the 
same time fix a maximum funeral benefit of 30 marks [$7.14]. 

Par. 3. The constitution may confine the granting of extended sick treatment to 
cases of insurance occurring during unemployment and within three weeks after 
membership has ceased. 

Par. 4. It shall correspondingly reduce the contributions for the insured persons 
who in case of sickness are entitled only to the extended sick treatment. 

Article 433. 

If the constitution of a rural sick fund contains specifications according to articles 
423 to 432, the constitutions of agricultural establishment sick funds which have 
their seat in the district of the rural sick fund may specify the same regulations. 

Article 434. 

Articles 503 and 517 to 520 are not applicable to agricultural employees with excep- 
tion of the gardeners and of industrial workmen temporarily employed in agriculture; 
the Federal Council shall specify what employments shall be considered as temporary. 

III. servants. 

Article 435. 

Articles 418^ 419, 422, and 426 to 434 are also applicable to the insurance of servants; 
however, the introduction of the extended sick treatment is not restricted by the con- 
ditions mentioned in article 427, paragraph 1, and the superior insurance office is 
always the competent office for the approval. On application of the employer or of 
the insm-ed j)erson, removal to a medical institution shall not occur if, according to 
a medical opinion, it is not necessary. 

Article 436. 

The employer may deduct the pecuniary benefit from the wages which he must 
continue to pay to the servant during the sickness. 



576 BULLETIN OF THE BUKEATJ OF LABOK. 

Article 437. 

Even where the constitution does not provide for extended sick treatment, the sick 
■ fund must grant it on application of the employer or of the servant, to a servant residing 
in the household, if the sickness is contagious; or if because of the nature of the sick- 
ness he can not be treated or taken care of in the household or this can "be done only 
with considerable inconvenience to the employer. 

Article 438. 

Paragraph 1. In a dispute between the employer and the sick fund in regard to 
this kind of obligation (art. 437) the local insurance office decides finally. 

Par. 2. On its application the local insm'ance office may exempt the sick fund 
from the extended sick treatment in cases where without fault on the part of the sick 
fund such treatment can not be provided. 

Article 439. 

If servants are also employed in the establishment or in another business undertak- 
ing of the employer, such employment, so far as it is not by itself exempt from insur- 
ance according to article 168, shall be determinative for their insurance and for the 
claims against the employer which they have in cases of sickness according to the 
law or constitution. 

Article 440. 

Paragraph 1. The State government may specify that servants are exempt from 
insurance according to this law if, at its publication, relief provision in case of sick- 
ness has been provided for them by State law. 

Par. 2. In extent and duration this relief must be at least ec[uivalent to the regular 
benefits of the sick funds, or must be made equivalent within six months after the 
coming into force of this law. 

Par. 3. The contributions collected for a servant in this connection must not be 
higher than the shares of contribution that he would have to pay according to this law. 

IV. temporary employment. 

Article 441. 

The employment is defined as temporary if by its nature it is usually restricted to 
less than one week, or if it is restricted by the labor contract in advance. 

Article 442, 

Paragraph 1. Persons employed temporarily who are not exempt from insurance 
according to article 168 shall be insured in the general local sick fund, or if they are 
principally employed in agriculture in the rural sick fund of their place of residence. 

Par. 2. The sick fund must keep an alphabetical membership list of such persona 
and must keep it up to date. 

Par. 3. The membership in the sick fund begins with the registration in this list. 

Article 443. 

As soon as a sick fund is informed that a temporarily employed person of its district 
does not belong to a sick fund, although subject to insurance, it must itself register such 
employee. 

Article 444. 

Paragraph 1. Persons subject to insurance must report themselves for registration. 

Par. 2. The local insurance office, the communal and the police authorities, tha 
place of issue of receipt cards (art. 1419), as well as the administrative bodies and 
the employees of the insurance carriers, must notify the proper sick fund of every per- 
son subject to insurance who is temporarily employed and who is not already a member 
of a sick fund. 

Par. 3. The highest administrative authority may regulate the particulars concern- 
ing this duty. 

Article 445. 

The sick fund may summon persons employed temporarily to decide upon their in- 
Buranco obligation and compel them by a fine of not more than 10 marks [$2.38] to 
comply with the summons. 



WORKMEN ^S INSURANCE CODE OF JULY 19^ 1911 GERMANY. 577 

Article 446. 

The person registered continues to be a member also during the time in which he 
is not temporarily employed for compensation. 

Article 447. 

Paragraph 1. The insured person shall on his resignation be taken off the list if he 
produces proof that he has become a member of another fund, or that he has given up 
the temporary employment and has done so not merely temporarily^. 

Par. 2. He shall also be taken off the list if the sick fund establishes these facts in 
any other manner, or if it learns that the insured person has died or has moved to the 
district of another sick fund. 

Par. 3. A person who has been taken off the list may continue to be a member ac- 
cording to article 313. The constitution shall specify the particulars concerning con- 
tributions and benefits. 

Article 448. 

Paragraph 1. If the insured person again resigns from the other sick fund (art. 
447), or again takes up the temporary employment, he shall immediately apply again 
for registration in the list. 

Par. 2. The sick fund shall supervise the insurance status of such persons. 

Article 449. 

Paragraph 1. If the insured person has been registered by an employer at his sick 
fund according to article 317, then this fact is to be noted on the list. 

Par. 2. Membership based on this registration continues the earlier membership 
without interruption. 

Par. 3. After notice of leaving has been given through the employer, the notation 
on the list shall be canceled. 

Article 450. 

Paragraph 1. The contributions and the benefits shall be established by the con- 
stitution in each case according to the local wage rates; in such case it may increase 
"by supplementary charges the rates of local wages for individual groups of persons tem- 
porarily employed. The approval of the superior insurance office is required for the 
rates so established. 

Par. 2. Paragraphs 2 and 3, of article 423, may be applied. 

Par. 3. The sick fund shall enter these contributions and benefits in separate 
accounts. 

Par. 4. The persons employed temporarily must themselves pay their share of the 
contribution (art. 381, par. 1). 

Par. 5. They have a claim to additional benefits of their sick fund provided by the 
constitution only in so far as the constitution so specifies. 

Article 451. 

Paragraph 1. The constitution may specify that persons employed temporarily 
shall have a claim to sick-fund benefits only after a waiting term of not more than 6 
weeks. 

Par. 2. If an earlier membership existed not longer than 26 weeks previous, then 
its duration shall be included in the waiting term. 

Article 452. 

Paragraph 1. If a person employed temporarily before his sickness, has not paid 
his share of the contributions for more than 8 weeks during the last 26 weeks, he shall 
receive only medical treatment; the funeral benefit may not exceed 30 marks [$7.14]. 

Par. 2. The same is applicable to an insured person who has been a member 
less than 26 weeks, if he has not paid his share of the contributions for more than one- 
fourth of the duration of the insurance. 

, Article 453. 

At the end of each quarter the union of communes must pay to the sick fund the 
total amount of the shares of the contributions of the employers, for which an account 
is submitted. 



578 BULLETIN OF THE BUREAU OF LABOR. 

Article 454, 

Paragraph 1. The union of communes may assess this amount in such a manner 
that it is j)aid either by all the inhabitants of the sick-fund district, or separately by 
the local sick funds and the rural sick funds of the district according to the number of 
inhabitants affected. 

Par. 2. Inhabitants who are accustomed to employ persons temporarily either in 
large numbers, or for long periods of time, shall be assessed at a higher rate in such 
cases. 

Article 455. 

Paragraph 1. With the approval of the union of communes and of the superior in- 
surance office, the constitution may specify that persons temporarily employed shall 
not pay any share of the contributions. 

Par. 2. In such a case the sick fund shall grant them only the benefits described 
in article 452, paragraph 1. 

Article 456. 

Paragraph 1. The State government may specifj^ how far an approval is necessary 
for decisions of the union of communes made according to articles 454 and 455. 

Par. 2. It may specify the legal procedure permissible against the assessment (art. 
454). 

Article 457. 

In their capacity as employers of temporary employees, as well as persons tempora- 
rily employed who do not pay any contributions according to article 455, they are 
neither entitled to hold oflace in the sick fund nor entitled to vote. 

Article 458. 

Paragraph 1. For the federal State or for parts of it, the State government may 
regulate the registration and payment of contributions for persons temporarily em- 
ployed in other ways. 

Par. 2. The State government may also decree that persons temporarily employed 
shall be insured according to the general provisions of this book, though if they are em- 
ployed in agriculture, then according to the provisions specially applicable thereto, 
if the State government itself or a statute of the union of communes or the constitution 
of the sick fund, takes care that the insurance, especially the registration, shall be ad- 
ministered properly and that the contributions shall be correctly paid. 

V. itinerant trades. 

Article 459. 

Paragraph 1. The employer, who must have an itinerant trade license, must reg- 
ister the persons employed in his itinerant establishment, if he intends to take them 
with him from place to place; he must, however, register only their number and have 
this number made members in the rural sick fund of the place where he applied for 
the license from the police authority. 

Par. 2. Employees in excess of the number registered and for whom he has requested 
a permit only after the receipt of the license according to article 62 of the Industrial 
Code must be registered through the intervention of the authority competent for this 
permit. 

Article 460. 

Paragraph 1. At the registration the employer mustpay in advance the contribu- 
tions either for the period up to the expiration of the itinerant trade license, or for a 
shorter period, with the permission of the directorate of the fund. 

Par. 2. If the license or the permit (art. 459, par. 2) is revoked or the establishment 
shuts down otherwise, then the directorate on application shall refund the excessive 
contributions; the directorate shall also make a refund for the full calendar weeks, 
for which it can be shown that the employer did not take the persons with him. 

Article 461. 

Paragraph 1. In the case of article 459, paragraph 1, the sick fund shall certify 
according to the model form determined by the federal council, the contributions 



WOKKMEn's insurance code of JULY 19, 1911 GEEMAXY. 579 

which have been received or postponed, together with a statement of the basic wage 
and of the weekly contribution. This certificate is to be submitted to the police 
authorities when application is made for the itinerant trade license. 

Par. 2. In the case of article 459, paragraph 2, the contribution shall be paid to the 
authority there designated, and shall be transmitted by them to the competent rural 
Bick fund. 

Par. 3. The itinerant trade license may be granted only if the certificate is produced, 
the permit only if the contributions have been paid. 

Par. 4. The basic wage and the weekly contributions shall be stated on the itiner- 
ant trade license. 

Article 462. 

Paragraph 1. The insured person shall receive the regular benefits of the sick 
funds. Article 382 is not applicable to them. The constitution may specify that 
the insured person on his own application shall also have a claim to the additional 
benefits of tne sick fund as long as the persons to whom they are to be granted remain 
in the district of the sick fund. 

Par. 2. If the sick fund grants more to its other members, it may correspondingly 
reduce the contributions of persons employed in itinerant trades. 

Article 463. 

Paragraph 1. For the periods which are not more than one month back the em- 
ployer may deduct from the wages of the insured persons two-thirds -of the contribu- 
tions paid by him for them. 

Par. 2. The local insurance office of the place where they are staying decides in 
a dispute as to the deductions. 

Article 464. 

A person who carries on an itinerant trade for another (art. 60d, par. 2, of the Indus- 
trial Code) shall have the rights and duties of the employer according to articles 
459 to 463. 

Article 465. 

Paragraph 1. The Federal Council may specify the particulars for the execution 

of articles 459 to 464. 

Par. 2. It may specify how far persons who are employed by an employer without 
itinerant trade license in his itinerant trade establishment (art. 59 of the Industrial 
Code) and whom he takes with him from place to place, are subject to insurance, 
and it may regulate their insurance otherwise than as stated in articles 459 to 464. 

VI. home-working industries. 

Article 466. 

Paragraph 1. Persons engaged in home-working industries, who are not exempt 
from insurance according to article 168, shall, so far as the law does not otherwise 
prescribe or permit, be insured in the rural sick fund in whose district they have 
their own working place, without regard to the seat of the establishment of the person 
who gives them the order. 

Par. 2. Their home-working employees shall be insured in the same fund. 

Article 467. 

The Federal Council may specify under what conditions persons engaged in home- 
working industries, to whom a yearly total minimum income of 2,500 marks [$595] 
is assured, may on their application, be exempted from insurance as regards their 
own person. 

Article 468. 

Paragraph 1. Article 442, paragraphs 2 and 3, and articles 443 to 449, are corre- 
spondingly applicable to persons engaged in home-working industries and their home- 
working employees (persons engaged in home-working industries subject to insurance). 

Par. 2. Witnout prejudice to these provisions, persons engaged in home-working 
industries who regularly employ, apart from the members of the family iii the house- 
hold, at least two persons subject to insurance as home workers, shall register them- 
selves and all employees in the sick fund for the purpose of entry in the list accord- 
ing to articles 317 to 319, and shall withdraw the names in the same manner. 



580 BULLETIN OF THE BUREAU OF LABOR. 

Article 469. 

The resources for the sickness insurance shall be raised partly by subsidies from 
those persons on whose order and for whose account the work is done on the home- 
work system (subsidies of the persons giving the order), partly from the persons en- 
gaged in home-working industries themselves and partly from their home-working 
employees (contributions). 

Article 470. 

Paragraph 1. The subsidies of the persons giving the order shall be based only 
on the wages which they pay to the persons engaged in home-working industries 
for the delivered work; no attention shall be paid to the facts as to whether the indi- 
vidual person engaged in home-working industries belongs to a sick fund, to which 
Bick fund he belongs, or what contributions he pays for himself and his employees 
in the fund. 

Par. 2. The value of raw materials and supplies which the person engaged in a 
home-working industry has furnished, may be left out of consideration in computing 
the wages. 

Article 471. 

The subsidies of the persons giving the order shall be computed uniformly for all 
industry branches and for the territory of the Empire in such a manner that in any 
one year their total amount shall cover half of the total cost which would accrue to 
the rural sick funds if they should grant the regular benefits with the local wages 
as the basic wage, and if all persons engaged in home-working industries subject to 
insurance should belong to them. 

Article 472. 

Paragraph 1. The subsidies of the persons giving the order are fixed up to Decem- 
ber 31, 1914, at 2 per cent of the wages paid. 

Par. 2. Thereafter the Federal Council shall determine them for four-year terms 
after a hearing of the accounting bureau of the Imperial Insurance Office; for the first 
10 years after the coming in force of this law the Federal Council is not restricted to 
these periods. 

Article 473. 

Paragraph 1. During the first week of each month, the person giving the order 
must transmit to the rural sick fund of the seat of his establishment a list of the per- 
sons engaged in home-working industries employed during the past month. 

Par. 2. Where no rural sick fund exists for the seat of the establishment of the 
person giving the order, the list is to be transmitted to the general local sick fund. 

Article 474. 

Paragraph 1. In the list there shall be stated the name and the seat of the estab- 
lishment of the person engaged in home-working industries as well as the amount 
of the earnings. 

Par. 2. If the value of the raw and other materials furnished by the person engaged 
in home-working industries have been included, then the quantity and value of these 
materials shall also be given as well as the amount actually paid after deduction of 
their value. 

Article 475. 

Paragraph 1. On application of the person engaged in home-working industries, 
the local insurance office competent for his residence determines finally as to the value 
of the raw and other materials. 

Par. 2. For industries in which home work is customary in the district, the local 
insurance office shall itself determine the average value of raw and other materials 
and verify such valuations from time to time. On appeal the superior insurance office 
decides finally. On application, the local insurance office communicates the average 
value to the person engaged in home-working industries, the person who gives the order, 
and to his sick fund (art. 473). 

Article 476. 

This fund must communicate the list of persons engaged in home-working indus- 
tries not insured with itself, to the fund in which they are designated as members. 
In case of doubt the list shall be communicated to the proper fund by the local insur- 
ance office to which the working place of the person engaged in home-working indus- 
tries belongs. 



WORKMEN ^S INSUEANCE CODE OF JULY 19^ 1911 GEEMANY. 581 

Article 477. 

Paragraph 1. When transmitting the lists, the person who orders the work shall 
pay the subsidies due. The computed amounts are to be rounded off to even pfennigs. 

Par. 2. Until the time of the mutual balancing of accounts (art. 492, par. 2) the fund 
must keep in custody the subsidies paid to it for the account of other funds. 

Article 478. 

Paragraph 1. The fund to which the person engaged in home-working industries 
belongs, must credit him with the subsidies paid for him according to the lists. 

Par. 2. If subsidies have been paid by the persons giving the order for noninsured 
persons, or if for other reasons the subsidies can not be credited to an insured person, 
the fund must use them to cover any deficits which arise out of the insurance of per- 
sons subject to insurance in home- working industries. 

Par. 3. If the result of the last three fiscal years shows that a considerable surplus 
is available, it must be used for the purpose of reducing the contributions or of»increas- 
ing the benefits for persons subject to insurance in home-working industries. 

Article 479. 

Paragraph 1. The provisions relating to disputes over contributions (art. 405) 
are correspondingly applicable to disputes over subsidies. 

Par. 2. The persons giving the order have the status of employers for the purposes 
of articles 137 to 140. 

Article 480. 

Paragraph 1. The constitution shall determine specifically the contributions 
which persons engaged in home-working industries must pay for themselves and for 
their home-working employees, as well as the sick benefits for these persons. 

Par. 2. The local wages serve as the basic wage. 

Article 481. 

Paragraph 1. The contributions are to be computed in such a manner that, to- 
gether with the subsidies of the persons who give the order, they shall cover the cost 
which accrues to the fund from the insurance of its members engaged in home-working 
industries. 

Par. 2. As long as the amount of the subsidies can not be approximately determined, 
the contributions of the members engaged in home-working industries are to be com- 
puted in such a manner that they shall cover one-half of the cost which would accrue 
to the sick fund by granting the regular benefits to these members. 

Par. 3. The general provisions relating to contributions are correspondingly appli- 
cable to the contributions which the person engaged in home-working industries has 
to pay for himself and his home-working employees. 

Article 482. 

Paragraph 1. The sick benefits shall consist of a pecuniary benefit in addition to 
medical treatment. 

Par. 2. The amount of the pecuniary benefit is based on the amount of the sub- 
sidies of persons giving orders which have been credited to the person engaged in 
home- working industries. Unless the constitution specifies otherwise, the pecuniary 
benefit in such case stands in the same relation to the legal pecuniary benefit as the 
amount of the subsidies credited during the last fiscal year to the person engaged in 
home-working industries stands to that of all the contributions, which the person 
engaged in home-working industries has paid during this period; higher benefits 
than those prescribed by the constitution shall not be granted. 

Par. 3. If the insurance has been in force only a short time then the contributions 
of this period only shall serve as basis. 

Article 483. 

With the approval of the superior insurance office the constitution may specify 
how far the pecuniary benefit shall be reduced or withheld, if the person engaged in 
home-working industries is in arrears with his contributions, 

18544°— No. 96—12 16 



682 BULLETIN OF THE BUREAU OF LABOR. 

Article 484. 

Paragraph 1. Whatever is applicable to the pecuniary benefit is also applicable 
to the other cash benefits of the fund, but with the exception of the funeral benefit. 

Par. 2. With the approval of the superior insurance office the constitution may- 
graduate the funeral benefit according to article 482, paragraphs 2 and 3. 

Article 485. 

Paragraph 1. On his application the fund shall permit the person engaged in 
home-working industries to pay double the amount of the contributions. The con- 
stitution may specify the particulars, such as when he may make the application and 
withdraw it. The share of the contributions of his home-working employees is not 
changed in such cases. 

Par. 2. In this case the subsidies paid in for him shall be paid over or credited to 
the person engaged in home-working industries. He and his employees subject to 
insurance are entitled to the full benefits which the constitution prescribes for insured 
persons engaged in home-working industries. 

Par. 3. The subsidies shall also be paid over or. credited to persons engaged in 
home-working industries who are insured on account of other employment subject to 
insurance. 

Article 486. 

Paragraph 1. If persons engaged in home-working industries are permanently 
employed only by the same person giving the order, with their consent he may also 
pay their contributions. 

Par. 2. He may then collect the contributions from the person engaged in home- 
working industries in the same manner as an employer collects the share of contribu- 
tions from insured persons. The payment of the earnings is in such a case considered 
as the same as the payment of wages. 

Article 487. 

Articles 426 to 432 are here correspondingly applicable. 

Article 488. 

Paragraph 1. If when this law comes into force the insurance of persons engaged 
in home-working industries is already regulated by statutory provisions for a given 
district or an industry, then the highest administrative authority may on application 
of the communes or of the union of communes affected permit the statutory pro- 
visions to remain in force. 

Par. 2. The approval is conditional upon the fact that the person giving the 
order and the person engaged in home-working industries have their establishment 
seat in the district of the local insurance office, or in the larger district determined 
by the highest administrative authority according to local requirements, and that the 
benefits granted to persons engaged, in home- working industries are at least equivalent 
to those granted by this law. 

Par. 3. Amendments to the statutory provisions require the approval of the highest 
administrative authority. 

Par. 4, Subsidies received from other persons giving orders to one engaged in home- 
working industries shall be paid or credited to him. 

Article 489. 

Paragraph 1. The union of communes may by statute exempt the person subject 
to insurance engaged in home-working industries from the obligation of contribution 
and assume itself the costs, in so far as they are not covered by the subsidies of the 
persons giving the order; article 485, paragraphs 1 and 2, is then applicable. 

Par. 2. In such a case it may be specified that the fund shall grant to these persons 
subject to insurance only the benefits designated in article 452. 

Par. 3. The statute must have the approval of the superior insurance office (decision 
chamber), and the provisions of paragraph 2 must have the approval of the highest 
administrative authority. 

Article 490. 

Paragraph 1. The State government may decree that in districts in which the 
persons engaged in home-working industries are unable to pay contributions, the 
union of communes shall assume the costs designated in article 489, paragraph 1. 



I 



workmen's INSURAITCE code of JULY 19, 1911 GERMANY. 583 

Par. 2. The insured persons engaged in home-working industries shall then 
receive only the benefits specified in article 452; article 485, paragraphs 1 and 2, is 
not applicable. 

Article 491. 

Paragraph 1. Where persons engaged in home-working industries are employed 
by intermediaries, such as persons who give the work out, factors, or subcontractors 
{Zwischenmeister) on the order of a third party, then the latter is considered as the 
person who gives them the order. 

• Par. 2. The Federal Council may transfer to the intermediaries either all or part of 
the duties of the person who gives the order; the person who gives the order must 
refund to them the subsidies already paid. 

Article 492. 

Paragraph 1. The Federal Council shall specify the manner in which the provi- 
sions relating to the insurance of persons engaged in home-working industries shall be 
executed. 

Par. 2. It shall especially regulate the manner in which the sick funds shall account 
for the subsidies among each other. It may order the participation of the accounting 
bureau of the Imperial Insurance Ofiice in fhe accounting. It shall draw up the 
model forms for the lists and shall specify the bases which must be submitted for the 
reexamination of the subsidies. 

Article 493. 

The Federal Council may specify the manner in which German persons who give 
orders to foreign persons engaged in home-working industries may be drawn on for 
contributions for the sickness insurance of persons engaged in home-working industries 
which they would have to pay if they employed Germans, and how these payments 
are to be used. It may punish contraventions of these provisions with a fine of not 
more than 300 marks [$71.40]. 

Vll. APPRENTICES. 

Article 494, 

Paragraph 1. No pecuniary benefit shall be granted to any class of apprentices 
who are employed without compensation. 
Par. 2. The contributions shall be correspondingly reduced. 

Section Nine. — Miners' Sick Funds. 

Article 495. 

Paragraph 1. In their constitutions the miners' sick funds must grant to their 
members at least the regular benefits of the local sick funds. 

Par. 2. With the approval of the supervisory authority, they may pay the pecuniary 
benefit otherwise than weekly, but in no longer intervals than semimonthly. 

Article 496. 

Miners' sick funds may collect an entrance fee from members who can prove that 
they have already belonged to another sick fund, only if more than 26 weeks have 
elapsed between the resignation and admission. 

Article 497. 

An application for exemption from compulsory insurance according to article 173 
shall require the consent of the majority of votes both from the group of employers in 
the directorate and from the group of the insured persons. 

Article 498. 

Paragraph 1. Articles 206 and 383 are applicable to the members. 

Par. 2. If the constitution specifies a waiting term for the claim to additional bene- 
fits, then members who leave for the purpose of performing their term of service in 
the Army or Navy may interrupt this waiting term for the duration of the service 

Eeriod, as well as for a maximum of 26 weeks additional. No new entrance fee shall 
e collected from them in this case. 



584 BULLETIN OF THE BUREAU OF LABOE. 

Article 499. 

Paragraph 1. The provisions of articles 119, 223, paragraphs 2 and 3, relating to 
transfer, assignment, attachment, and charging up of insurance claims, are applicable 
to all benefits which the miners' associations or sick funds must pay according to this 
law or to the State laws. 

Par. 2. The highest administrative authority shall specify which authority is com- 
petent for the approval according to article ]19, paragraph 2. 

AR'i'ICLB 500. 

Paragraph 1. Articles 211 to 214, 219 to 222, 224, 313, and 314 are here corre- 
spondingly applicable. 

Par. 2. If the place of residence of a sick person belongs to the territory of a miners' 
sick fund, the latter must grant the preliminary relief, urgent cases excepted. 

Article 501. 

Paragraph 1. The representatives of the insured persons in the general meeting 
(miners' elders) in the directorate of th^ miners' sick funds, miners' associations, and 
miners' funds, must be elected by secret ballot. Election according to the principles 
of proportionate representation is permissible. 

Par. 2. Invalid miners maj^ be elected to the general meeting and to the directorate 
of a miners' sick fund, even if they pay contributions to the sick fund as voluntary 
members. 

Article 502. 

Paragraph 1. Articles 368 to 376 are here applicable. 

Par. 2. In other cases, so far as this law does not provide otherwise, the provisions 
of State laws relating to miners' associations and miners' funds remain unaffected. 

Section Ten. — Substitute Funds. 

I. authorization. 

Article 503. 

Paragraph 1. Mutual insurance associations to which a certificate as a registered 
aid fund according to article 75a of the sickness insurance law has been granted before 
April 1, 1909, shall on their application be admitted as substitute funds for the district 
and class of their members subject to insurance : Prorided, That they have a permanent 
membership of more than 1,000 members, and that their constitution meets the 
requirements of articles 504 to 513. 

Par. 2. On application of such an insurance association the highest administrative 
authority of its seat may reduce the minimum membership to 250. 

Article 504. 

Paragraph 1. The admission of persons subject to insurance may be made depend- 
ent on participation in other societies or associations only if the constitution at the 
time of the establishment of the association contained such a provision applicable to 
all the members. 

Par. 2. In other respects members shall not be obliged to perform acts or to refrain 
from actions which do not affect the object of the association. 

Article 505. 

Paragraph 1. Persons subject to insurance who belong to the class of persons for 
whom according to its constitution the association was established shall, with reserva- 
tion of article 504, paragraph 1, not be denied admission; in particular, admission shall 
not be made dependent on their age or state of health. 

Par. 2. The association may, however, subject those who apply for admission to a 
medical examination, and refuse the admission of persons who are sick at the time. 

Par. 3. The association may reject persons subject to insurance who apply for 
admission if they are in debt to the substitute fund for contributions from a former 
membership or if they have a claim to benefits from some other insurance which are 
at least equal to the benefits of their sick fund. 



WOEKMEn's insurance code of JULY 19, 1911 GERMANY. 585 

Article 506. 

Paragraph 1. If not later than January 1, 1911, the association has graduated the 
contributions of persons subject to insurance, according to their age at the time of 
admission, then it may retain these grades and change them with the approval of its 
supervisory authority. But the highest grade must not exceed the lowest by more 
than was the case on the date specified, and at the most by one-half. The association 
may increase the contributions of persons subject to insurance according to their state 
of health at the time of admission, but such increase shall not be greater than one- 
fourth of the regular rate. 

Par. 2. The association shall not graduate its benefits according to the age or state 
of health of those who join. 

Article 507. 

Paragraph 1. The person subject to insurance shall be granted benefits at least 
equal to the regular benefits of the sick funds according to the basic wage which is the 
standard in his sick fund. The association may restrict persons subject to insurance 
to the lowest class of membership which meets these requirements. 

Par. 2. Benefits for persons subject to insurance may be reduced only to the same 
extent as in the case of the sick funds. The association must draw up sickness regula- 
tions (art. 347, par. 1) for them; the regulations must have the approval of the local 
insurance office competent for its seat. 

Par. 3. The association may increase the pecuniary benefit by one-fourth of the 
basic wage (par. 1) to persons subject to insurance who do not make use of the right 
of article 517, paragraph 1. 

Article 508. 

The association may grant to its members and their dependents without restriction 
as to duration or amount all the benefits which sick funds of their kind are permitted 
to grant by article 179. The benefits to survivors of deceased members shall not 
exceed ten times the weekly benefit to which the deceased person was entitled. 

Article 509. 

Paragraph 1. The resources of the association may be used only for the benefits 
provided by the constitution, for the accumulation of the reserve, for the costs of admin^ 
istration, and for the general purpose of the prevention of sickness. 

Par. 2. It is also permissible to use them for the attendance at meetings which shall 
serve the legal purposes of the sickness insurance and of the substitute funds. 

Par. 3. The association shall not collect contributions for other purposes from the 
persons subject to insurance. 

Par. 4. It may only undertake matters which the law relating to registered aid 
funds (Reichs-Gesetzblatt 1876, p. 125, and 1884, p. 54) permit, or which this book 
[book two] permits. 

Article 510. 

Only members who are of age and in possession of their civic rights may belong to 
the directorate or supervisory council. 

Article 511. 

After their admission the association may not exclude members or treat them less 
favorably in regard to contributions or benefits because they have passed a certain age 
limit or because their state of health has undergone a change. 

Article 512. 

Members who have belonged to it for two years shall not be excluded because they 
have resigned from a society or association, or are excluded therefrom. If it ex- 
cludes a member before the expiration of two years for such a reason, it shall refund 
him not less than the entrance fee, if he has paid such. 

Article 513. 

The association may permit the resignation of persons subject to insurance only at 
the close of the calendar quarter, regardless of the fact that they may have changed 
their employment in the meantime. 



586 BULLETIN OF THE BUREAU OF LABOB. 

Article 514. 

Paragraph 1. The superior administrative authority of its seat shall decide on the 
application of an association for authorization to act as a substitute fund. The Impe- 
rial Insurance OflSce shall decide in case its district extends beyond the borders of the 
federal State. 

Par. 2. If the application is approved, the association receives a certificate to that 
effect and it shall add to its name the words ''substitute fund." 

Par. 3. The authorization may be refused only if the association does not meet the 
requirements of the provisions of articles 503 to 513. The reasons for refusal shall be 
stated. 

Article 515. 

Paragraph 1. The certification of the superior administrative authority must be 
published by the newspaper designated for its official announcements and the certi- 
fication of the Imperial Insurance Office by the Reichsanzeiger. 

Par. 2. As proof of authorization a printed copy of the constitution of the associa- 
tion may be used and it shall contain the certification, in addition to the year of 
publication, number, and page number, of the newspaper. 

Article 516. 

Paragraph 1. If an authorized association does not meet, or no longer meets the 
conditions of authorization, and in spite of the request of its supervisory authority 
does not remedy this defect within the specified time limit which must be not less 
than six weeks, then the certification shall be revoked. 

Par. 2. It shall also be revoked if the association increases the group of persons 
subject to insurance who may belong to the association. 

Par. 3. The reasons for revocation shall be communicated. It shall be published 
in the same manner as the certification. 

II. RELATION to SICK FUNDS. 

Article 517. 

Paragraph 1. In the case of persons subject to insurance who are members of a 
substitute fund, their rights and duties as members of that sick fund to which they 
belong shall be suspended if they apply therefor; they shall have no claim to benefits 
of the sick fund and shall neither hold office nor vote. 

Par. 2. Their employers have to pay only their own share of the contribution to 
the sick fund; the share of the insured person is not paid. 

Article 518. 

Paragraph 1. If the class from which the association recruits its members is 
composed principally of insured persons of the class specified in article 165, paragraph 
1, Nos. 3 to 5, or of office employees, brick makers, or other insured persons, in whose 
occupations a frequent change of employment from one place to another is customary, 
the Imperial Insurance Office may, on application of this substitute fund, decree, 
with the right to revoke the decree, that the sick funds shall transmit to the substitute 
fund four-fifths of the shares of contributions paid to them according to article 517, 
paragraph 2, by the employers for its members. 

Par. 2. The Federal Council may specify the particulars herewith as well as in 
regard to the publication of the decree. 

Article 519. 

Paragraph 1. If a person subject to insurance intends to make use of the right of 
article 517, paragraph 1, he shall make application to the directorate at the time of 
admission to the sick fund, or at the latest on the second pay day; he shall communi- 
cate to it the name and seat of the substitute fund and prove that he belongs to it. 

Par. 2. On application of a substitute fund the federal council may confer on it 
the right to make applications in place of the persons subject to insurance. 

Par. 3. The sick fund shall give information to the employers of the person subject 
to insurance, only in regard to the question whether his rights and duties are suspended 
but not as to which substitute fund he belongs. 



WOKKMEn's insurance code of JULY 19, 1911 GEEMANY. 587 

■Article 520. 

Paragraph 1. If the application has not been made at the proper time on admission 
to the sick fund, then it may be made not earlier than at the beginning of the next 
calendar quarter; it must be made to the directorate at least one month in advance; 
the admission to the substitute fund must also be proved to the directorate. 

Par. 2. Tire same is applicable to members of the sick fund who join only after 
admission to a substitute fund. 

Article 521. 

• 

Paragraph 1. The substitute fund shall send a notice of the withdrawal of a mem- 
ber subject to insurance who has made use of the right of article 517, paragraph 1, to 
the directorate of its sick fund or to the common place of registration established for 
it, not later than at the close of the calendar quarter; it shall also send a notice within 
a month at the latest of the exclusion of such a member or of his transfer to a class of 
membership entitled to lower benefits than those specified in article 507, paragraph 1. 

Par. 2. If the sick fund or the place of registration is unknown to the substitute 
fund, the notification shall be directed to the local insurance office in whose district 
the member was employed at the last payment of the contribution. This employ- 
ment and the place where he is staying at that time shall be indicated. The local 
insurance office shall transmit the notification to the directorate of the proper sick 
funds. 

Article 522. 

Paragraph 1. The constitution of the substitute fund shall specify which of its 
administrative bodies or employees shall make the notifications and the applications 
which have been transferred to the fund according to article 519, paragraph 2. 

Article 523. 

If, in the case of a member of a substitute fund, the pecuniary benefit to which he 
would be entitled in his sick fund is increased so that the pecuniary benefit of the 
substitute fund for his membership class would no longer meet the requirements of 
article 507, paragraph 1, then his rights and duties according to article 517, paragraph 
1, shall be suspended until the close of the calendar quarter, but for not less than two 
weeks. 

Article 524. 

The obligations of insurance carriers according to article 116, and of sick-fund direc- 
torates according to article 344, are also applicable to substitute funds. 

Article 525. 

The local insurance office shall decide by judgment procedure in disputes between 
substitute funds and sick funds over the refund of benefits granted illegally (art. 
224, No. 2). 

Section Eleven. — Final Provisions and Penal Provisions. 

I. final provisions 

Article 526. 

Paragraph 1. A union of communes, in the meaning of this book, is a union whose 
district forms the district of the fund or embraces it as the next larger union. 

Par. 2. The highest administrative authority may specify in which cases the 
commune is competent in place of the union of communes: Provided, That the district 
of the fund does not extend beyond that of the commune. 

Par. 3. "\Miere no union of communes exists, the State government shall specify 
which is competent. 

Article 527. 

Paragraph 1. If a local, or rural sick fund has been created for several communes 
(independent manor districts, or marks, or march districts),^ which together do not 

1 Selbstandige Gutsbezirke oder Gemarkungen, ausmarkische Bezirke. 



588 BULLETIN OF THE BUREAU OF LABOR. 

form a union of communes, they shall be combined according to particular provision of 
the State government into a union for special purposes (ZwecJcverband). 

Par. 2. The provisions of this book as to unions of communes are also applicable 
to such unions for special purposes. 

Article 528. 

If the district of a fund extends beyond the district of a local insurance office, then 
the local insurance office of its seat shall be competent for it. 

ii. penal provisions. 

Article 529. 

Paragraph 1. If an insured person violates the sickness regulations or the order 
of the attending physician, or neglects the notification incumbent on him accord- 
ing to article 190, then the directorate of the fund may impose upon him fines of 
not more than three times the amount of the daily pecuniary benefit for each case 
of contravention. 

Par. 2. The directorate of a miner's sick fund, and of a substitute fund, has the 
same authority as regards a member subject to insurance who violates the sickness 
regulation or the order of the attending physician. 

Par. 3. On appeal the local insurance office decides finally. 

Article 530. 

Paragraph 1. Whoever in violation of his obligation does not register persons sub- 
ject to insurance (arts. 317, 319, and 468, par. 2), or does not submit the lists of employ- 
ees engaged in home industries (art. 473), may be fined not to exceed 300 marks 
[$71.40], if he acts intentionally, and not to exceed 100 marks [$23.80] if he acts negli- 

Par. 2. Whoever violates in other ways the provisions relating to the registration 
of persons liable to insurance or to the submission of lists or persons engaged in home 
industries (arts. 317 to 319, art. 468, par. 2, and arts. 473 and 474) may be fined not to 
exceed 20 marks [$4.76]. ^ 

Par. 3. Whoever in violation of his obligation neglects to submit applications as 
req[uired by article 519, paragraph 2, and article 522, or to make reports as required by 
article 521, may be fined not to exceed 20 marks [$4.76]. 

Par. 4. The local insurance office shall assess these fines. On appeal the superior 
insurance affice decides finally. 

Article 531. 

Paragraph 1. The fund shall recover contributions which are in arrears independ- 
ently of the fine. 

Par. 2. It may also require the persona fined to pay from one to five times the 
contributions which are in arrears. The amount shall be collected in the same man- 
ner as communal taxes. This is not applicable to persons engaged in home-working 
industries who violate article 468, paragraph 2. 

Par. 3. Article 396 is here correspondingly applicable. 

Article 532. 

Paragraph 1. Employers and persons giving the order (art. 486) shall be punished 
with a fine of not more than 300 marks [$71.40], or be punished with arrest, unless a 
severer penalty is provided by pther legal provisions if they intentionally do any of 
the following: 

1. Deduct from the employees' earnings larger shares of contributions than this 

law permits, or make deductions in the case mentioned in article 398; 

2. Violate the provisions of article 402. 

Par. 2, The sa,me penalty shall be imposed on employers who act in contravention 
of the provisions of article 400. 

Article 533. 

Paragraph 1. Employers and persons giving the order (art. 486) shall be punished 
with confinement in jail if they intentionally keep back from the fund entitled 
thereto the shares of contributions which they have deducted from their employees 
or have received from them. 



WOKKMEn's insurance code OE JULY 19, 1911 GERMANY. 589 

Par. 2, They may in addition be fined not more than 3,000 marks [$714] and be 
sentenced to the loss of their civic rights. 

Par. 3. If there are mitigating circumstances, then a fine only may be imposed. 

Article 534. 

Paragraph 1. The employer may transfer the obligations which this law imposes 
on him to establishment managers, persons charged with supervision, or other em- 
ployees of his establishment. 

Par. 2. If such representatives act in contravention of this law, the penalty shall be 
imposed on them. In addition, the employer is also liable to punishment, if — 

1. The contravention took place with his knowledge; 

2. He has not observed the necessary care in the selection and supervision of his 

representatives; in this case only a pecuniary fine may be imposed on the 
employer. 
Par. 3. One to five times the contributions which are in arrears (art. 531, par. 2) 
may also be assessed on the representative and collected from him. Besides the rep- 
resentative the employer is also liable for this amount if he has been fined according 
to paragraph 2. 

Article 535. 

The penal provisions of article 23, paragraph 2, are applicable to managing officials 
and employees of the funds and of the federations of funds ; they are applicable to the 
employers in the case of establishment funds and to the persons appointed according 
to article 362, paragraph 1, if they intentionally commit acts which injure the fund. 

Article 536. 

The same penal provisions (arts. 529 to 535) are applicable — 

1. To the members of the directorate, if a stock company, a mutual insurance 

association, a registered cooperative society, a guild, or other legal person is 
the employer; 

2. To the business manager if a society with limited liability is the employer; 

3. To all partners personally liable, as far as they are not excluded from the rep- 

resentation, if any other business corporation is the employer; 

4. To the legal representatives of insolvent and partially insolvent employers, as 

well as to the liquidators of a business corporation, a mutual insurance asso- 
ciation, a registered cooperative society, a guild, or other legal person. 



590 BULLETIN OF THE BUREAU OF LABOR. 

BOOK THREE.— ACCIDENT INSURANCE. 
PART ONE. 

INDUSTRIAL ACCIDENT INSURANCE. 

Section One, — Scope of the Insurance, 

Article 537. 

Paragraph 1, Subject to the insurance are — 

1. Mines, salt works, ore-treating works, quarries, pits (open digging); 

2. Factories, shipyards, metallurgical and metal working plants, pharmacies, 

and if they are conducted as a business, breweries and tanneries; 

3. Yards for the preparation of building materials, establishments executing 

work in building, decorating, stone cutting, locksmithing, blacksmithiug, 
or plumbing (Brunnenarheit) ; furthermore stone-breaking establishments as 
well as building work done by other than regular building establishments; 

4. The chimney-sweeping, window-cleaning, butchering trades, and the opera- 

tion of bathing establishments; 

5. The entire establishment of the railroad and the postal and telegraph admin- 

istrations as well as the establishments of the naval and military adminis- 
trations; 

6. Inlana navigation, rafting, flat-boating and ferries, the hauling of ships (tow- 

ing), inland fishing, fish culture, the operation of ponds and the cutting 
of ice, if done as a business or administered by the Empire, a State, a com- 
mune, a union of communes or other public body, dredging, as well as the 
keeping of vessels on inland waters; 

7. Establishments engaged in hauling, express, livery, the hiring of riding 

animals and keeping of stables if carried on as a business, the keeping 
of vehicles other than water conveyances if driven by mechanical or 
animal power, as well as the keeping of riding animals; 

8. Elevator, storage, and cellarage establishments if conducted as a business; 

9. The trades of goods packer, goods loader, agent, sorter, weigher, measurer, 

inspector, stower; 
lOo Establishments for the transportation of persons or goods, and timber-felling 
establishments, if they are connected with a commercial undertaking 
which extends beyond the scope of a small-scale establishment; 
11, Under the same assumption (number 10 preceding), establishments for the 
treatment and handling of goods. 
Par, 2. The Imperial Insurance Ofiice decides which commercial undertakings 
(numbers 10 and 11) are not subject to the accident insurance on the ground that 
they are small-scale establishments. 

Article 538. 

Those establishments are considered as factories in the meaning of article 537, 
number 2, which — 

1. Work up or work over articles as a business and for this purpose employ regu- 

larly at least 10 workmen; 

2. Manufacture or work up as a business, explosives or explosive materials or 

produce or distribute electrical power; 

3. Make use of steam boilers or of machinery moved by mechanical or animal 

power, provided that such use is not merely temporary; 

4. Are placed in the category of factories by the Imperial Insurance Office. 

Article 539. 

Other establishments are also subject to the insurance if they are important parts 
or subsidiary establishments of the establishments described in articles 537 and 538. 

Article 540. 

Article 539 is not applicable — 

1. To agricultural establishments which are subsidiary establishments. 

The constitution (art. 675) may also place subsidiary establishments of 
this kind under the industrial accident insurance if the persons employed 



WOBKMEn's INSUEANCE code, of JULY 19, 1911 GERMANY. 591 

in them are principally persons from the main establishment. When such 
a provision comes into force, the subsidiary establishment is withdrawn 
from insurance in the agricultural accident association. The provision 
may only be canceled at the end of a fiscal year. Before a provision of 
the constitution on the membership of an agricultural subsidiary establish- 
ment is approved, the agricultural accident associations affected must be 
heard. If the accident associations do not come to an agreement, the 
Federal Council decides the matter upon application. The agreement of 
the agricultural accident association must in any case be secured, if the 
provision has not yet been in force more than three years; 
2. To marine navigation establishments, and other establishments falling under 
articles 1046 and 1049, which are important parts of the establishments 
described in articles 537 and 538 and extend beyond the local traffic or are 
subsidiary establishments. 

Article 541, 

Articles 916, and 918 to 921, regulate what establishments and activities of the kind 
described in articles 537 and 538 as parts or subsidiary establishments of an agricul- 
tural establishment are to enter the agricultural instead of the. industrial accident 
insurance. 

Article 542. 

Paragraph 1, If, of several establishments which an undertaker has in the terri-! 
tory of the same superior insurance offi<ie, some are of the kind that belong to the 
industrial and some to the agricultural accident insurance, and if they do not already 
belong to the same accident association according to the preceding regulations, then, 
upon application of the employer, they are to be assigned to one accident associ- 
ation if altogether not more than 10 persons subject to the insurance are regularly 
employed in the establishments. 

Par. 2. The application is to be made to the superior insurance office, which, after 
a hearing of the accident associations affected, decides upon the assignment. 

Par. 3. The employer and the accident associations affected may appeal from the 
decision of the superior insurance office. 

Par. 4. Up to the time that the decision comes into force, the employer may with- 
draw the application. 

Par. 5. The assignment may be revoked only at the close of a fiscal year and 
as long as the grounds mentioned in paragraph 1 apply, only upon the application 
of the employer. If the assignment has not yet been in force for three years since 
the rendering of the final decision, then the revocation shall also require the consent 
of the accident associations affected. 

Article 543. 

Paragraph 1. The Federal Council may exempt from the insurance establish- 
ments having no particular accident risk. 

Par. 2. The Imperial Insurance Office prepares the decision of the Federal Council; 
in this connection the decision senate must render an opinion. 

Article 544. 

Paragraph 1. The following are insured against accident in establishments or 
activities which are subject to the insurance according to articles 537 to 542 (indus- 
trial accidents): Provided^ That these two groups are employed in these establish- 
ments or activities: 

1. Workmen, helpers, journeymen, apprentices; 

2. Establishment officials whose annual earnings do not exceed 5,000 marka 

[$1,190] of income. 
Par. 2. Acts which have been forbidden do not exclude the assumption of an indus- 
trial accident. 

Article 545. 

Foremen and technical officials are also to be considered as establishment officials. 

Article 546. 
The insurance covers household and similar service to which insured persons, who 



592 BULLETIN OF THE BUKEAU OF LABOK. 

are principally employed in an establishment or in insured activities, are assigned 
by the undertaker or his representative. 

Article 547. 

By decision of the Federal Council the accident insurance can be extended to speci- 
fied occupational diseases in industries. The Federal Council is authorized to issue 
special regulations for the administration thereof. 

Article 548. 

The constitution may extend the compulsory insurance — 

1. To undertakers of establishments whose annual earnings do not exceed 3,000 

marks [$714], or who regularly employ for compensation either no one or 
at the most two persons subject to insurance; 

2. To persons engaged in home-working industries (art. 162) without regard to 

the number of persons subject to insurance employed, who are the under- 
takers of an establishment described in articles 537 and 538; 

3. To establishment ofiicials whose annual earnings exceed 5,000 marks [$1,190] 

of compensation. 

Article 549. 

Paragraph 1. The directorate of the accident association may declare exempt 
from the insurance those undertakers who, according to the constitution, are subject 
to the compulsory insurance (art. 548, number 1) but are exposed to no special acci- 
dent risk. The directorate shall revoke the exemption whenever the reasons there- 
for no longer exist. 

Par. 2, On appeal, the superior insurance office decides finally. 

Article 550. 

Paragraph 1. Undertakers (art. 633) as well as pilots on inland waters, who con- 
duct their business for their own account, may insure themselves against the results 
of industrial accidents if they do not have annual earnings of more than 3,000 marks 
[1714], or if they regularly employ for compensation either no one, or at the most two 
persons subject to insurance. 

Par. 2. The constitution may also admit them to self-insurance, if they have annual 
earnings of more than 3,000 marks [$714], or regularly employ for compensation at 
least three persons subject to insura,nce. 

Article 551. 

The provisions of article 548, Nos. 1 and 2, and of article 550, on the insurance of 
employers, apply also to their wives or husbands engaged in the establishment. 

Article 552. 

The constitution may provide under what conditions accidents of the kind described 
in articles 544 and 546 may be insured against : 

1. By the undertaker of the establishment, on behalf of persons who are employed 

in the establishment, but are not insured according to articles 544, 545, and 
548, No. 3; 

2. By the undertaker of the establishment, or the directorate of the accident asso- 

ciation, on behalf of persons who are not employed in the establishment but 
who visit the working place of the establishment or move about therein; 

3. By the directorate of the accident association, the members of their official 

bodies, and their employees. 

Article 553. 

The constitution may provide that the volunta- y insurance shall be out of force 
if the contribution has not been paid in spite of warning, and that a new application 
shall remain of no effect until th.e arrears of contributions have been paid. 



WOKKMEn's insurance code of JULY 19, 1911 GERMANY. 593 

Article 554. 

Paragraph 1. Exempt from the insurance are — 

1. Army and Navy officers and surgeons to whom the officers' pension law (Reichs- 

Gesetzblatt, 1906, p. 565) is applicable; 

2. Military persons of the lower classes to whom the noncommissioned officers' 

and privates' (Mannschaft) provision law (Reichs-Gesetzblatt, 1906, p. 593) is 
applicable; 

3. The other persons describe by article 1 of the accident relief law for officials, 

etc., of June 18, 1901 (Reichs-Gesetzblatt, p. 211); 

4. Officials V ho have been appointed at a fixed salary and with a claim to retire- 

ment pension in the establishments of the administration of a federal State, 
of a union of communes, or of a commune; 

5 . Other officials of a federal State, of a union of communes, or of a commune if relief 

for them has been provided according to articles 14 of the above-mentioned 

accident relief law. 
Par. 2. Building operations outside of a building establishment conducted as a 
business, as well as the keeping of riding animals or conveyances not conducted as a 
business (art. 537, Nos. 6 and 7), are considered as establishments in the meaning of 
the accident relief law. 

Section Two. — Benefits of the Insurance. 

Article 555. 

The object of the insurance is the compensation specified in the following provi- 
sions for the damage arising from bodily injury or death. 

Article 556. 

The injured person and his survivors have no claim if they have purposely brought 
about the accident. 

Article 557. 

Paragraph 1. If the injured person has brought the accident upon himself by the 
performance of an act which according to a verdict of the court is a crime or an inten- 
tional misdemeanor, then the compensation for damages may be wholly or partly 
denied. 

Par. 2. Contravention of mining regulations shall not be considered a misdemeanor 
in the meaning of the preceding paragraph. 

Par. 3. The pension may be either wholly or partly paid to the injured person's 
dependents living in the Empire, if in case of his death they would have a claim to 
a pension. German protectorates are to be included in the Empire in the meaning 
of this provision. 

Par. 4. The compensation may also be denied if no verdict of a court has been 
rendered because of the death or the absence or of any other reason connected with 
the person of the injured party. 

Article 558. 

In case of an injury, there is to be granted from the beginning of the fourteenth 
week after the accident — 

1. Medical treatment; it includes physician's services and the providing of medi- 

cines, other therapeutical appliances as well as the aids which are requisite 
to assure the success of the treatment or to alleviate the results of the injury 
(crutches, supporting apparatus, and the like); 

2. A pension during the continuance of the disablement. 

Article 559. 

The amount of the pension is as follows, as long as the injured person as a result of 
the accident is — 

1. Totally disabled, two-thirds of the annual earnings computed according to 

articles 563 to 570 (full pension); 

2. Partially disabled, that part of the full pension which corresponds to the pro- 

portion of the loss of earning power (partial pension) . 



594 BULLETIN OF THE BUREAU OF LABOR. 

Article 560. 

As long aa the injured i)erson is, as a result of the accident, so helpless that he can 
not exist without the services and care of others, the pension is to be correspondingly 
increased, though not to more than the full amount of his annual earnings. 

Article 561. 

Paragraph 1. If the injured person at the time of the accident was already per- 
manently and totally disabled, men only medical treatment (art. 558, No. l)is to be 
granted. 

Par. 2. As long as in consequence of the accident he is so helpless that he can not 
exist without the services and care of others, a pension not greater than one-half of 
the full pension is to be granted. 

Article 562. 

As long as the injured person as a result of the accident is unemployed through no 
fault of his own, the accident association may for a time raise the partial pension to not 
more than a full pension. 

Article 563. 

Paragraph 1. The pension shall be computed according to the compensation which 
the injured person had drawn during the last year in the establishment (annual earn- 
ings). 

Par. 2. In so far as the annual earnings exceed 1,800 marks [$428.40], the excess 
shall be reckoned at only one-third. 

Article 564. 

Paragraph 1. If the injured person had been employed in the establishment a full 
year before the accident, the annual earnings shall be considered as 300 times the 
average earnings for a full working day, subject to the provisions of article 569. 

Par. 2. If it is shown that it was customary to operate for a greater or a smaller 
number of working days, then the multiplication shall be made with this number 
instead of 300. 

Article 565. 

If the injured person had not yet been employed in the establishment a full year 
before the accident, then the annual earnings shall be computed in such a manner 
that the number of days on which the injured person was employed in the establish- 
ment shall be multiplied by the average earnings for a full working day; for the rest 
of the customary number of working days of operation of the year there shall be added 
the average earnings which, during this time, insured persons of the same kind and 
earning capacity in the establishment or in a neighboring establishment have secured 
for a full working day. 

Article 566. 

If the computation according to article 565 can not be carried out, then the annual 
earnings shall be computed by multiplying the customary number of working days of 
operation in the year with the compensation which the injured person during the 
employment in the establishment received on an average for a full working day. 

Article 567. 

If the customary number of working days of operation in the year is so small that 
those employed in the establishment regularly perform work elsewhere for compensa- 
tion in addition, then in the cases specified in articles 565 and 566, the number of 
working days necessary to make up the 300 shall be added to the amount computed 
according to articles 565 or 566, using the local wages for adults over 21 years of age 
which at the time of the accident have been determined for the place of employment 
of the injured person (arts. 149 to 152). 

Article 568. 

If the injured person had been employed by the hour, then the average earnings 
for the full working day may not be placed higher than the average earnings for a work- 
man of the same kind who has been employed during the whole working clay. 



workmen's INSUEANCE code of JULY 19, 1911 GERMANY. 595 

Article 569. 

Articlea 564 to 568 are to be correspondingly applied if the annual earnings are 
composed of amounts specified for not less than weekly periods. 

Article 570. 

If the annual earnings do not equal 300 times the local wages for adults over 21 years 
(art. 567), then 300 times this wage shall be considered as the annual earnings. 

Article 571. 

In the case of persons who, previous to the accident, were already partially and 
permanently disabled, that part of the local wages shall be used as a basis which 
corresponds to the proportion of earning capacity before the accident. 

Article 572. 

Articles 563 to 571 apply correspondingly to injured persons who were employed 
in an insured activity without belonging to an insured establishment. 

Article 573, 

Paragraph 1. If the insured person is insured against sickness on the basis of the 
imperial insurance or in a miners' sick fund, he shall be granted at least the regular 
sick-fund benefits of medical treatment and pecuniary benefit according to article 179. 
However, the pecuniary benefit from the beginning of the fifth week after the accident 
until the expiration of the thirteenth week shall amount to at least two-thirds of the 
basic wage. This may not be refused, even in the case mentioned in article 192, unless 
the injured person has brought the accident on himself during the commission of a 
crime or during an intentional misdemeanor (art. 557, pars. 1 and 2). The corre- 
sponding rule applies to the house money. 

Par. 2. If an insured person receives at the same time pecuniary sick benefits from 
another insurance, then the reduction of the pecuniary benefit described in para- 
graph 1 shall be made according to article 189, 

Par, 3. For members of substitute funds the basic wage of their sick fund, while 
for members of miners* sick funds the basic wage as specified in article 180, shall be 
determinative. 

Par. 4. If the person insiued against sickness becomes ill as the result of an acci- 
dent while in a foreign country, then the provisions of articles 221 and 222 are appli- 
cable in a corresponding manner. 

Article 574. 

Those persons are to be considered as insured against sickness in the meaning of 
article 573 who: 

1. Are exempt from the insurance according to articles 418 and 435, in so far as 

the sick fund has to make provision for them (art. 422); 

2. On account of lack of employment have separated from the sick fund, but still 

have a claim on the fund (art. 214). 

Article 575. 

If in the case of persons subject to the agricultural sickness insurance the pecuniary 
sick benefit or the house money is not to be paid, or to be paid only in part because 
according to articles 420, 421, and 425 there are contractual benefits to be paid by the 
employer, or because according to article 423 the person is in receipt of a pension on the 
basis of the imperial insurance, then the value of such benefits is to be included in 
the sick relief specified in article 573 in so far as they are payable during the same 
time. 

Article 576. 

Paragraph 1, Whatever must be granted by the sick funds, the miners* sick funds, 
or the substitute funds according to articles 573 and 575, in addition to the minimum 
benefits which must otherwise be provided according to the law or the constitution, 
must be repaid by the accident association, or in other cases by the undertajcer (art, 
633), N.-lienever a compensation must be paid to the injured person beyond the thir- 
teenth wee!:. The cons' itutiou of the accident association can specify that the latter 
in all cases must reimburse tho additional benefits. 

Par. 2 The same holds true in a corresponding manner if the injured person who 
is insured against sickness has no claim to sick benefits. 



696 BULLETIN OF THE BUKEATJ OF LABOR. 

Article 577. 

Paragraph 1. If an injured person belongs to the group of insured persons accord- 
ing to articles 544 and 545, but is not insxired against sickness on the basis of the imperial 
insurance or in a miners' fund, then the undertaker, under reservation of paragraphs 
2 and 3, must grant him the sick benefits during the first 13 weeks. For the amount of 
the benefits and for their reimbursement articles 573 to 576 are applicable. With the 
consent of the injured person the undertaker can also grant care and maintenance 
according to article 185, paragraph 1, and for this deduct not more than one-fourth of 
the pecuniary sick benefit. As the basic wage for this purpose, the local wage for the 
place of employment (arts. 149 to 152) shall be used. These provisions shall apply in 
the case of establishment ofiicials only if their annual earnings do not exceed 2,500 
marks [|595]. 

Par. 2. In the cases mentioned in articles 169, 418, and 435, the employer has to 
provide the injured person for the first 13 weeks with the benefits specified in para- 
graph 1. In such case that basic wage shall be used which is determinative for the 
sick fund. In these benefits those mentioned in articles 169, 418, and 435 shall be 
included. Anything in excess of this must be repaid to the employer by the accident 
association or by the undertaker (art. 576). The same holds true in the case men- 
tioned in articles 170 and 171 if the claims arising out of article 169 are provided to the 
persons mentioned in those articles. 

Par. 3. If a domestic servant is exempt from the insurance because of other relief 
specified in article 440, paragraph 1, then the provisions of paragraph 2, sentences 1 to 
4, apply to him in a corresponding manner, though the carrier providing the other relief 
takes the place of the employer. The carrier providing the other relief must claim 
reimbursement for the additional benefits from the undertaker if the accident asso- 
ciation is not obliged to make the repayment. 

Article 578, 

The details for the carrying out of articles 573 to 577 are to be specified by the 
Imperial Insurance Ofl&ce. 

Article 579. 

Paragraph 1. The accident association may take over either wholly or in part the 
benefits to be paid by the undertaker. The latter must reimburse the association to 
the extent to which the injured person could claim sick benefits from him and in so 
far as the association itself would not be obliged to make repayment. In such case the 
reimbursement for sick care shall be three-eighths of the basic wage according to which 
the pecuniary sick benefit of the beneficiary is to be computed. 

Par. 2. This shall be correspondingly applicable if, in the cases mentioned in 
article 577, paragraphs 2 and 3, the employer or the carrier of other relief takes the 
place of the undertaker. 

Article 580. 

Paragraph 1. If in the case of injured persons to whom articles 573 to 577 do not 
apply it is to be feared that they must later be provided with accident compensation, 
the accident association may inaugurate a course of treatment, even before the end of 
the thirteenth week after the accident, for the purpose of removing or alleviating the 
results of the injury. 

Par. 2. The accident association can place the injured person in a medical institu- 
tion; in such case article 597, paragraphs 2 to 4, is applicable. 

Par. 3. V/ith the consent of the injured person the association can grant care and 
maintenance as specified in article 185, paragraph 1. 

Par. 4. The injured person may claim from the accident association an appropriate 
recompense for the earnings he loses on account of the course of treatment. 

Article 581. 

Paragraph 1. Within the first 13 weeks after the accident, the accident associa- 
tion may also have a medical examination made of the injured person even if it does 
not grant a course of treatment, and can also call for information concerning the 
treatment and the condition of the injured person from the sick fund, the miners' 
sick fund, the substitute fund, the physician in charge, or in the cases mentioned 
in article 577, from the undertaker. 

Par. 2. On application of the accident association, the local insurance office may 
compel the undertaker to provide this information within a specified time on penalty 
of fines not exceeding 100 marks [$23.80]. 

Par. 3. Appeals from the determination of the fines shall be decided finally by 
the superior insurance office. 



WORKMEN ^S INSURANCE CODE OF JULY 19, 1911 GERMANY. 597 

Article 582. 

Paragraph 1. If the pecuniary sick benefit ceases before the expiration of the 13 
weeks, but the disability continues after the payment ceases, then the pension must 
be granted from the day on which the pecuniary sick benefit ceases. 

Par. 2. The constitution may also permit the payment of the pension even if 
after the payment of the pecuniary sick benefit ceases, a loss of earning power remains, 
but will apparently end before the expiration of the 13 weeks. 

Article 583. 

Paragraph 1. If tho sick fund, miners' eick fund or substitute fund has improp- 
erly stopped the payment of its benefits before the expiration of the 13 weeks, 
then the claim of the injured person to the pecuniary sick benefit up to the amount 
of the pension (art. 582) is transferred to the accident association. 

Par. 2. The same rule is applicable in the case of the benefits paid by the under- 
taker (art. 577). 

Article 584. 

If the accident association, during the time it was required according to article 558 
to furnish compensation, has not provided benefits for the injured person, and if 
during this time, the sick fund, the miners' sick fund, or the substitute fund has 
granted pecuniary sick benefits or care and maintenance in a hospital according to 
articles 182, 184, and 185, then the injured person shall be considered as having been 
totally disabled during this time. 

Article 585. 

Controversies concerning claims for reimbursement arising out of articles 573 to 
577, and article 579, shall be decided by judgment procedure {8 pruchverfahren) . 

Article 586. 

Paragraph 1. In fatal cases there must in addition be granted — 

1. As a funeral benefit, the fifteenth part of the annual earnings; however, this 

must not be less than 50 marks [$11.90]; article 203 is applicable in a corre- 
sponding manner; 

2. A pension to the survivors from the date of the death; it consists of a fraction 

of the annual earnings according to the provisions of articles 588 to 595. 
Par. 2. The annual earnings shall be computed in the same manner as in the case 
of bodily injury; however, article 571 does not apply in this connection. 

Article 587. 

If because of an earlier accident this rate of annual earnings is smaller than that 
received by him previously, then the earlier pension is to be included in the annual 
earnings; in such case, however, that amount may not be exceeded which as annual 
earnings was used as the basis of the earlier pension. 

Article 588. 

If the deceased leaves a widow or children, the pension shall amount to one-fifth 
of the annual earnings — 

For the widow up to the time of her death or remarriage; 

For each child up to the completed fifteenth year of age; for an illegitimate child, 
however, only in so far as the deceased has provided him with maintenance 
according to legal obligation. 

Article 589. 

If the widow remarries, she receives three-fifths of the annual earnings as a 
settlement. 

Article 590. 

Paragraph 1. The widow has no claim if the marriage has taken place only after 
the accident. 

Par. 2. The accident association may, however, under special circumstances, even 
then grant a widow's pension. 

18544°— No. 96—12 17 



598 BULLETIN OF THE BUREAU OF LABOR. 

Article 591. 

Paragraph 1. The provisions concerning pensions of children shall apply also for 
children of a female person who is not a married woman. 

Par. 2. The same holds true for children of a married woman born before mar- 
riage, or for her children of an earlier marriage, if they do not have the legal status of 
lawful children of the surviving husband. 

Article 592. 

Paragraph 1. In case a married woman is killed, who on account of the disability 
of the husband had supported her family either wholly or in part out of her own 
earnings, for the duration of the need there is to be granted a pension equal to one- 
fifth of the annual earnings — 

To the widower up to the time of his death or remarriage; 
To each child up to the completed fifteenth year of age. 

Par. 2. The widower has no claim if the marriage has taken place after the accident. 

Par. 3. If the husband of the deceased person, without legal grounds therefor has 
absented himself from the household and has not fulfilled his obligations of mainte- 
nance toward the children, then the accident association may grant the pension to 
the latter. 

Article 593. 

Paragraph 1. If the deceased has left relatives in the ascending line whom he 
has supported to an important degree out of his earnings, then for the duration of the 
need a pension is to be granted to them, which together shall be one-fifth of the annual 
earnings. 

Par. 2. If there are relatives of different degree in the ascending line, then the 
pension shall be approved for the parents in preference to the grandparents. 

Article 594. 

If the deceased leaves orphan grandchildren whom he has wholly or partly sup- 
ported out of his earnings, then for the duration of the need there shall be granted to 
them, up to the completed fifteenth year of each, a pension equal altogether to one- 
fifth of the annual earnings. 

Article 595. 

Paragraph 1. The pensions of the survivors may not together exceed three-fifths 
of the annual earnings; in the contrary case they shall be decreased, and in the fol- 
lowing manner: In the case of consorts or children in the same degree; relatives of 
the ascending line have a claim only in bo far as consorts or children, and grand- 
children only in so far as those named first do not exhaust the highest amount named. 

Par., 2. In case one survivor ceases to have a right to a pension, the pensions of 
the others are to be increased to the highest permissible amount. 

Article 596. 

Paragraph 1. The survivors of a foreigner, if such survivors at the time of the 
accident do not customarily reside in Germany, have no claim to a pension. 

Par. 2. The Federal Council can exclude from this provision foreign border terri- 
tories or subjects of such foreign States the legislation of which provides a correspond- 
ing relief for the survivors of Germans killed by an industrial accident. 

Par. 3. German protectorates are considered as German territory in the meaning 
of paragraph 1. 

Article 597. 

Paragraph 1. In place of the benefits prescribed in article 558 the accident asso- 
ciation may grant free medical treatment and maintenance in a medical institution 
(medical-institution care). 

Par. 2. If the injured person has a household of his own, or is a member of the 
household of his family, then his consent thereto is necessary. 

Par. 3. In the case of a minor over 16 years of age his consent is sufficient. 

Par. 4. The consent is not necessary if — 

1. The nature of the injury requires treatment or care which is not possible in 

the family of the injured person; 

2. The sickness is infectious; 



workmen's INSUEANCE code op JULY 19, 1911 GERMANY. 699 

3. The injured person has repeatedly acted contrary to the directions of the 

attending physician; 

4. The condition or conduct of the injured person make continuous observation 

necessary. 
Par. 5. In the cases mentioned in paragraph 4, numbers 1, 2, and 4, the accident 
association shall, if possible, provide treatment in a medical institution. 

Article 598. 

If the accident association provides treatment in a medical institution after the first 
13 weeks, or on account of the cessation of the pecuniary sick benefit before that time, 
then a pension must be granted to the relatives of the injured person in so far as it 
would be granted in case of his death (relative's pension) . This claim is also possessed 
by the wife whose marriage with the injured person has taken place after the accident. 

Article 599. 

With the consent of the injured person the accident association may grant care and 
attendance by sick nurses, nursing sisters, or other nurses (house care — Hauspflege), 
especially when the placing of the injured person in a medical institution is indicated, 
but may not be carried out, or an important reason exists for leaving the injured per- 
son in bis household or in his family. 

Article 600. 

Paragraph 1. If the accident association assumes the payment of the benefits of 
the undertaker according to article 579, then in place of the sick care and of the pe- 
cuniary sick benefit, it may provide hospital care and house money according to arti- 
cles 184, 186, and 577, paragraph 1; with the consent of the injured person the accident 
association may also grant care according to article 185, paragraph 1, but in such case 
shall deduct not more than one-fourth of the pecuniary sick benefit. 

Par. 2. The undertaker must reimburse the accident association to the extent to 
which the injured person could claim sick benefits from him and in so far as the asso- 
ciation itself would not be obliged to make repayment. In such case the reimburse- 
ment for the sick care shall be three-eighths of the basic wage according to which the 
pecuniary sick benefit of the beneficiary is to be computed. 

Par. 3. The same holds true in a corresponding way if in the cases mentioned in 
article 577, paragraphs 2 and 3, the employer or the carrier of other relief takes the 
place of the undertaker. 

Article 601. 

Controversies concerning claims for reimbursement arising out of article 600 shall be 
decided in judgment procedure {Spruchverfahren) . 

Article 602. 

The accident association may by its constitution grant special relief to the injured 
person who is placed in a medical institution {Heilanstalt) and to his dependents 
either by general rules or according to the need of the parties. 

Article 603. 

The accident association may at any time inaugurate a new course of treatment if it 
may be expected that such would increase the earning capacity of the accident pen- 
sioner. 

Article 604. 

In addition to the injured person, the sick fund, the miners' sick fund, or the substitute 
fund to which he belongs, may apply for the resumption of the medical treatment. 

Article 605. 

Paragraph 1. If the sick funds, the miners' sick funds, the substitute funds, or the 
carriers of the accident insurance have placed an injured person in an institution pos- 
sessing adequate arrangements for treatment, then the injured person during the course 
of treatment may not be placed in another institution without his consent. 

Par. 2. The local insurance office of the place where he is staying may grant the 
consent instead. 



600 BULLETIN OF THE BUREAU OF LABOR. 

Article 606. 

If the injured person has not complied with a regulation which affects the medical 
treatment without any legal or other appropriate reasons therefor, and if hia earning 
capacity will thereby be unfavorably influenced, then his compensation may be dis- 
allowed for the time being, either wholly or partly, after this result has been pointed 
out to him. 

Article 607. 

Paragraph 1. On application the directorate of the accident association may grant 
to the person receiving pension maintenance in a home for invalids (Invalidenhaus), 
an orphan asylum ( Waisenhaus), or a similar institution, in place of the pension. 

Par. 2. Such institutions are considered as hospitals, homes, and sanatoria, in the 
meaning of article 11, paragraph 2, and of article 23, paragraph 2, of the law on relief 
residence (Reichs-Gesetzblatt, 1908, p. 381). 

Par. 3. So placing the receiver of a pension obligates him to a release of his pension 
for a period of three months, and if he does not protest within one month before the 
expiration of this period, to a further period of three months. 

Article 608. 

If an important change takes place in the conditions which were of importance in 
the determination of the compensation, then a new determination may be made. 

Article 609. 

During the first two years after the accident a new determination on account of a 
change in the condition of the injured person may be undertaken or demanded at any 
time. If, however, within this time limit a permanent pension has been legally deter- 
mined, or if this time limit has expired, then a new determination may be undertaken 
or demanded only in periods of at least one year. These periods are not affected 
by the inauguration of a new course of treatment. The periods may be shortened by 
mutual agreement. 

Article 610. 

The decision, or the fkial decision, which decreases or withdraws the pension will 
become effective with the expiration of the month following its announcement. 

Article 611. 

The increasing or regranting of the pension may be claimed only for the time after 
the registry of the claim therefor. 

Article 612. 

Paragraph 1. The cost of the medical treatment and funeral benefits are to be 
paid within one week after their determination, while pensions are to be paid in 
monthly amounts in advance. If the pension amounts to 60 marks [$14.28] or less, 
then it is to be paid in quarterly amounts in advance; Provided, That it is not probable 
that it will cease to be paid before the expiration of the quarter. 

Par. 2. With the consent of the person entitled to the pension the accident associa- 
tion may pay the same at longer intervals of time. 

Par. 3. The pension shall be rounded off in amounts of full 5 pfennigs [1.2 cents] 
for the month or the quarter. 

Article 613. 

Paragraph 1. The pension shall be paid for the rest of the month in which the 
death occurred, in which the remarriage occurred, and in which the pension was sus- 
pended. In cases where in addition to the part of the month on account of the pen- 
sion of the injured person there is also a pension of the survivors, then the latter shall 
have a claim to the higher amount. 

Par. 2. If the pension is to be paid for a longer period of time, the accident associa- 
tion may pay the pension for this period also. 

Article 614. 

If the person entitled to compensation has not received it at the time of his death, 
then the wife or husband, the children, the father, the mother, the brothers and 
sisters are entitled to it in order; Provided, That they have lived with the person 
entitled to the pension at the time of his death in the same household. 



WORKMEN V INSURANCE CODE OF JULY 19, 1911 GERMANY. 601 

Article 615. 

Paragraph 1. The pension shall be suspended — 

1. As long aa the beneficiary is serving a prison term of more than one month or 

has been placed in a workhouse or reformatory. 

If he has dependents in Germany who in case of his death would have a 
claim to a pension, then the pension up to the amount of his claim shall be 
turned over to them. 

2. So long as a person who is a German subject remains in a foreign country and 

neglects : 

To inform the accident association of his whereabouts; 

As an injured person, on the demand of the accident association, to present 
himself from time to time to the competent consul or other German au- 
thorities designated by him. 

The Imperial Insurance Office shall specify the particulars in regard 
to communicating and presentation. 

If the person entitled to pension proves that he has neglected to make 
the prescribed communication and presentation without any fault of his 
own, then the right to the pension shall be resumed again. 

3. As long as the foreign beneficiary voluntarily resides in a foreign country; 

4. As long as a foreign beneficiary is expelled from the territory of the Empire 

on account of a condemnation in a criminal process. The same applies to a 

foreign beneficiaiy who has been expelled from the territory of one of the 

federal States on account of a condemnation in a penal procedure, so long 

as he does not stay in another federal State. 

Par. 2. In the cases mentioned in numbers 3 and 4, the Federal Council may 

suspend the cessation of a pension for foreign border territories, or for the subjects of 

such foreign States whose legislation guarantees a corresponding relief to Germans 

and their survivors. 

Par. 3. If the expulsion of a foreigner entitled to a pension (par. 1, No. 4) is not 
directed by a condemnation, or on account of a condemnation in a penal procedure, 
then paragraph 1, No. 2, shall be applicable. 

Par. 4. German protectorates shall be regarded as German territory in the meaning 
of these provisions. 

Article 616. 

If the pension of an injured person amounts to one-fifth of a full pension or less, 
then the accident association, with his approval and after a hearing by the local insur- 
ance office, may settle upon him a capital sum corresponding to the value of his annual 
pension. 

Article 617. 

Paragraph 1. A foreigner entitled to a pension who gives up his customary abode 
in Germany, or who resides customarily in a foreign country, can with his consent 
receive a settlement from the accident association equal to three times the amount of 
his annual pension, and without his consent may be paid a capital sum corresponding 
to the value of his annual pension. 

Par. 2. The Federal Council may nullify this provision for foreign border territories. 

Article 618. 

In cases of settlement with a corresponding capital sum (arts. 616 and 617), the 
Federal Council shall regulate the computation of the value of the capital sums. 

Article 619. 

If on a new investigation the accident association becomes convinced that the 
benefits were incorrectly disallowed, either wholly or partly, or have been withdrawn 
or suspended incorrectly, it may determine these anew. 

Article 620. 

The accident association does not need to demand the return of the compensation 
which it had to pay before a legal decision came into force. 

Article 621. 

With the exception of the cases mentioned in article 119, claims for compensation 
may be transferred, assigned, and pledged with legal effect, also on account of demands 



602 BULLETIN OF THE BUKEAU OF LABOE. 

of the sick funds, miners' associations, miners' funds, substitute funds, and insurance 
institutions which are entitled to reimbursement according to articles 1501, 1522, and 
1528. The transfer, assignment, and execution is only permissible to the amount of 
the legal claims for reimbursement. 

Article 622. 

Claims may be reduced only by the following: 
Arrears of contributions; 

Advances made out of the assets of the accident association; 
Compensation which was paid incorrectly; 
Costs of procedure which are to be returned; 

Fines which have been imposed by the directorate of the accident association; 
Claims for reimbursement of the accident association according to articles 903 
and 904. 

Section Three.— Carriers of the Insurance. 

I. THE accident ASSOCIATIONS AND OTHER CARRIERS OF THE INSURANCE. 

Article 623. 

As carriers of the insurance, the accident associations comprise the undertakers of 
the insured establishments (art, 633, par. 1). 

Article 624. 

The Empire or the federal State is the carrier of the insurance if the establishment 
is conducted for its account in the two cases mentioned below, which also include 
building work and activities in connection with the keeping of riding animals or 
conveyances not managed as a business (art. 537, Nos. 6 and 7). These two cases are — 

1. In the case of the administration of the postal service, the telegraph service, 

the navy, and the army; 

2. In the case of the railways. 

Article 625. 

Paragraph 1, The Empire or the federal State is the carrier of the insurance if the 
establishment is conducted for its account in the case of establishments for dredging, 
inland navigation, rafting, fiatboating, and ferrying, unless the establishments, accord- 
ing to article 2, paragraph 2, of the law of May 28, 1885 (Reichs-Gesetzblatt, p. 159), 
belong to the accident associations created for them. 

Par. 2. The later entrance of such establishments into an accident association, 
or the rewithdrawal, or the reentrance, in case the accident association does not agree 
thereto, is permissible only with the approval of the Federal Council, and in the 
absence of other agreement only at the close of a fiscal year. 

Par. 3. In case of rewithdrawal the Empire or the federal State must from then on 
satisfy the claims for compensation which exist against the accident association on 
account of accidents in the establishment which has withdrawn, and in this connection 
an appropriate portion of the reserve and of other assets of the accident association 
must be turned over to the Empire or to the federal State. The latter are then required 
to assume the payment of an appropriate part of the interest and refunding payments 
for the floating debt (art. 779). 

Par. 4. The accident association and the Empire or the federal State may by mutual 
agreement act in variance of the provisions of paragraph 3; in such cases the decision of 
the general meeting of the accident association is required. 

Par. 5. If controversies arise in regard to distributing the assets between the acci- 
dent association and the Empire or the federal State, they may settle the question 
by an arbitration decision; otherwise it shall be decided by the Imperial Insurance 
Office (decision senate). 

Article 626. 

In so far as the Empire, a federal State, a public union or other corporation, has 
the sole right through law or treaty to engage in inland navigation on a waterway or a 
part thereof (towing and the like), these establishments belong to the accident associa- 
tion created for them. 

Article 627. 

Paragraph 1. The Empire or the federal State is the carrier of the insurance for 
operations other than the building work and activities in connection with the keeping 
of riding animals or conveyances not conducted as a business according to article 624 



workmen's insurance code of JULY 19, 1911 — GERMANY. 603 

(art. 537, Nos. 6 and 7): Provided, That these other building operations or activities 
are conducted for its account. This does not apply, whenever the Empire or the 
federal State through a declaration of the imperial chancellor or of the highest adminis- 
trative officials enter into the accident association, which is the proper one for building- 
trades operations or for the undertakers of establishments engaged in hauling, or in 
inland navigation, as a business. The declaration of entrance shall also specify the 
date on which the entrance becomes effective. 

Par. 2. The re withdrawal and the reentrance is permissible if the accident associa- 
tion does not agree thereto, only with the approval of the Federal Council, and in the 
absence of other agreement only at the close of a fiscal year. 

Par. 3. In the case of a rewithdrawal, article 625, paragraphs 3 to 5, is applicable 
in a corresponding manner. 

Article 628. 

Paragraph 1. A commune, a union of communes, or another public corporation is 
the carrier of the insurance for such building work and activities in connection with 
the keeping of riding animals or other conveyances not conducted as a business (art. 
537, Nos. 6 and 7) which it conducts as an employer in establishments other than 
railways: Provided, That the highest administrative authorities, on application, 
have declared the corporation able to assume the burden. Otherwise such a corpora- 
tion shall be insured together with the designated operations and activities according 
to article 629. 

Par. 2. The highest administrative authorities may unite several communes, 
unions of communes, or other public corporations into a federation for the common 
carrying out of the insurance and declare the latter to be capable of carrying the 
burden. 

Par. 3. A commune, a union of communes, or another public corporation, may 
through a declaration of its directorate enter into the competent accident association 
(art. 627, par. 1). The declaration of entrance shall also specify the date on which- 
the entrance becomes effective. 

Par. 4. If such a corporation is declared to be unable to carry the burden, then its 
rewithdrawal from the accident association and its reentrance, in the absence of other 
agreement, is permissible only at the close of a fiscal year. If it is declared capable of 
carrying the burden, then article 627, paragraph 2, is applicable for its rewithdrawal 
from the accident association and its reentrance; for its rewithdrawal article 625, 
paragraphs 3 to 5, is also correspondingly applicable. 

Article 629. 

Paragraph 1. Building work which other undertakers do not carry out as a busi- 
ness shall be insured at the expense of the undertakers, or of the communes, or of the 
unions, through special institutions (branch institutes) which shall be attached to the 
accident associations of the building trades employers (arts. 783 to 835). The accident 
association is the carrier of the branch institute. 

Par. 2. In the same way branch institutes (arts. 836 to 842) shall be attached to the 
accident associations of the undertakers of establishments engaged in hauling and 
inland navigation as a business for the insurance of activities connected with the keep- 
ing of riding animals or other conveyances not conducted as a business (art. 537, Nos. 6 
and 7). The Federal Council can attach the branch institutes or parts of them to other 
accident associations. In place of the branch institutes or parts of them, the Federal 
Council may create mutual insurance associations as independent insurance carriers, 
and in such case regulates their organization. In case the Federal Council herewith 
alters the status of branch institutes or of mutual insurance associations it shall regulate 
the transfer of the burden of accidents and of the assets. 

ii. composition of the accident associations. 

Article 630. 

Paragraph 1. The accident associations shall be created according to geographical 
districts; they include all establishments of the branch of industry for which they were 
created. In the case of accident associations for railways or the establishments desig- 
nated in article 537, Nos. 6 and 7, this pro\dsion may be departed from. 

Par. 2. The Federal Council may approve the uniting of the undertakers of establish- 
ments which belong to miners' associations, or to miners' funds, into miners' accident 
associations. 

Par. 3. Those accident associations which have been created in accordance with 
earlier accident insurance laws retain their former status under reservation of the 
changes permitted according to articles 635 to 648. 



604 BULLETIN OF THE BUREAU OF LABOR. 

Article 631. 

Paragraph 1 . If the establishment includes important parts of industries of different 
kinds, it is to be assigned to that accident association to which the principal estab- 
lishment belongs. The same holds true under reservation of article 540, of subsidiary- 
establishments, and of such insured activities which are portions of the establishment. 

Par. 2. Establishments and operations in inland navigation and rafting are included 
in the insurance of the principal establishment only if they do not extend beyond local 
traffic. 

Par. 3. Activities which according to their nature belong to the insurance of a branch 
institute or a mutual insurance association are to be insured in the accident association 
to which the undertakers engaged in activities of the same kind belong when the latter 
are more important than the other activities. 

Article 632. 

The provisions of article 542 are applicable in a corresponding manner for several 
establishments of the same undertaker all of which are subject to the industrial acci- 
dent insurance and do not otherwise come under article 631, paragraph 1. This does, 
not hold true for establishments engaged in inland navigation and rafting. 

Article 633. 

Paragraph 1. The undertaker of an establishment is the one for whose account the 
establishment is conducted. 
Par. 2, In other cases the undertaker is — 

1. In the case of building work which is not carried out by a building establish- 

ment conducted as a business, the one for whose account it is conducted; 

2. In the case of the activities connected with the keeping of riding animals or 

conveyances not conducted as a business (art. 537, Nos. 6 and 7), whoever 
keeps the riding animal or conveyance. 

Article 634. 

Paragraph 1. An accident association has in those cases to compensate accidents irt 
insured activities in an establishment which is conducted for the account of an under- 
taker not belonging to it, if an undertaker belonging to it has given the order and has to 
make payment therefor. 

Par. 2. This applies in a corresponding way for the branch institutes. 

III. changes in the status of the accident associations 

Article 635. 

Changes in the status of the accident associations are permissible with the beginning 
of a fiscal year, according to articles 636 to 648. 

Article 636. 

Several accident associations may unite themselves by a concurrent resolution of the 
general meetings of the accident associations. The resolution must have the approval 
of the Federal Council. 

Article 637. 

1 

Paragraph 1. The general meetings of the accident associations affected can 
resolve that individual branches of industry or geographically limited parts of an acci- 
dent association shall be transferred to another association. The resolution must 
receive the approval of the Federal Council. 

Par. 2. The approval can be withheld if the withdrawal would endanger the solvency 
of one of the accident associations affected. 

Article 638. 

If application is made on the basis of a resolution of the accident associations to have 
several accident associations united, or separate branches of industry or geographically 
limited parts, separated from the accident association and added to another, then if an 
accident association affected protests, the Federal Council shall decide the matter upon 
appeal. 



WOEKMEN's insurance code of JULY 19^ 1911 — GERMANY. 605 

Article 639. 

The general meeting of the accident association decides in the first place upon an 
application to create a special accident association for separate branches of industry, or 
geographcally limited parts. The Federal Council decides finally. 

Article 640. 

The Imperial Insurance Ofiice prepares the decision of the Federal Council; in such 
cases the decision senate must express an opinion. 

Article '641. 

The Federal Council may withhold its approval to the creation of a new acciden 
association if — 

1. The number of establishments or of the necessary persons would be too small 

to guarantee its permanent solvency ; 

2. The acceptance of establishments in the accident associations is refused, which 

for the same reasons (No. 1) are not in a position to form a solvent accident 
association of their own and can not properly be assigned to another accident 
association. 

Article 642. 

If several accident associations combine to form a new accident association, then all 
their rights and duties are transferred to the latter as soon as the change becomes effec- 
tive. 

Article 643. 

If parts of an accident association are separated to form another or to be joined to 
another, then the other accident association from that time on must satisfy the claims 
for compensation which had grown up against the old accident association on account 
of accidents in the establishments which have been separated. The same is aleo 
applicable if agricultural subsidiary establishments are transferred to an industrial 
accident association according to the constitution (art. 540, No. 1). 

Article 644. 

Accident associations upon which are placed the obligation of compensation have a 
claim to a corresponding part of the reserve and of the other assets of the accident 
association released from these obligations. They are required to assume the payment 
of a corresponding part of the interest and of the amounts necessary for the refunding of 
the floating debt (art. 779). 

Article 645. 

The general meetings of the accident associations affected may act in variance with 
the provisions of articles 642 to 644 through concurrent resolution. 

Article 646. 

If a dispute arises during the negotiations in regard to the division of the assets 
between the accident associations affected, they may settle the matter by an arbitra- 
tion decision; otherwise the Imperial Insurance Office (decision senate) shall decide. 

Article 647. 

Paragraph 1. If an accident association becomes unable to fulfill its legal obliga- 
tions, the Federal Council may dissolve the same if the Imperial Insurance OflB.ce 
(decision senate) makes application therefor. 

Par. 2. The branches of industry of a dissolved accident association shall be appor- 
tioned to other accident associations. The latter are to be heard in advance. 

Par. 3. On the dissolution of an accident association its rights and duties are assumed 
by the Empire. 

Article 648. 

If an accident association which is subject to the supervision of a State insurance 
office (art. 723) is dissolved as insolvent, then its rights and obligations are to be assumed 
by the federal State. 



606 BULLETIN OF THE BUEEAU OF LABOR. 

Section Four — Organization op the Accident Associations. 
i. membership and the right to vote. 

Article 649. 

Each undertaker is a member of an accident association whose establishment belongs 
to the branches of industry covered by it and in whose territory the establishment has 
its seat. The Empire, the federal States, communes, unions of communes, and other 
public corporations are members in so far as articles 624 to 628 do not prescribe 
otherwise. 

Article 650. 

Membership begins with the opening of an establishment or with the placing of it 
under the insurance obligation; for the Empire and the federal States, for com- 
munes, unions of communes, and other public corporations, the beginning of the 
membership is regulated according to articles 625 to 628. 

Article 651. 

Paragraph 1. In each establishment the undertaker must make known through a 
placard — • 

1. To which accident association and section the establishment belongs; 

2. Where the place of business of the directorate of the accident association and 

of the section is located. 
Par. 2. If an agricultural establishment is placed under the industrial accident 
insurance according to article 540, number 1, and article 542, the placard must call 
attention thereto. 

Article 652. 

If members or their legal representatives do not possess civic rights, they shall not 
have the right to vote. 

II. registration of the establishments. 

Article 653. 

Paragraph 1. Whoever with an establishment becomes a member of an accident 
association, must within one week report to the local insurance office in whose district 
the establishment has its seat the following: 

1. The kind of the establishment and the object of the establishment; 

2. The number of insured persons; 

3. The accident association to which the establishment belongs; 

4. If the establishment is first opened after the law comes into force, the date of 

opening and if the establishment becomes subject to the insurance only after 
the law enters into force, the day when insurance obligation begins. 
Par. 2. The report is to be sent in duplicate; the receipt thereof will be acknowl- 
edged. 

Par. 3. If an establishment has already been reported and when a change in the 
person only of the undertaker of the establishment has occurred, then a repetition of 
the report according to paragraph 1 is not required. 

Article 654. 

The local insurance office assigns each establishment in its territory concerning which 
a report has been received, within one week by sending one of the reports to the 
directorate of the accident association designated therein. 

Article 655. 

If in the opinion of the local insurance offi.ce the establishment belongs to an accident 
association other than that designated, it shall notify the directorate of the latter 
accident association as well as the undertaker and shall transmit the reports to the 
directorate of the other accident association. 

Article 656. 

Paragraph 1. If the report is not sent in or is incomplete, the local insurance 
office can require the undertaker to give the information within a specified time 
under penalty of a fine up to 100 marks [|23.80]. 



workmen's insurance code of JULY 19, 1911 — GERMANY. 607 

Par. 2. On appeal against the determination of the fine the superior insurance office 
decides finally. 

Par, 3. The local insurance office assigns the establishment within one week after 
the expiration of the specified time limit by furnishing the information itself (art. 653, 
par. 1). 

in. register of establishments. 

Article 657. 

The directorates of the accident associations must keep registers of establishments 
on the basis of the reports sent to them by the Imperial Insurance Office and of the later 
assignments (arts. 654 and 656). 

Article 658. 

The members shall be listed in the register of establishments after it has been ascer- 
tained that they have joined the proper association. 

Article 659. 

Paragraph 1. Membership certificates shall be sent to the members listed in the 
register of establishments, by_ the directorate of the accident association. If the 
accident association is divided into sections, the membership certificate must designate 
the section to which the undertaker belongs. 

Par. 2. If acceptance in the register is declined, a decision with the grounds there- 
fore must be transmitted to the head of the establishment through the intervention of 
the local insurance office. 

Article 660. 

Within one month after the delivery of the membership certificate or of the decision 
declining membership, appeal against the acceptance or the disallowance must be made 
by the undertaker to the superior insurance office. The appeal is to be transmitted 
to the local insurance office. If in proceedings on the appeal it is shown that although 
the establishment is subject to the accident insurance it still does not belong to any of 
the existing accident associations, then the matter is to be laid before the Imperial 
Insurance Office. The latter shall assign the establishment to that accident association 
to which according to its nature it is most nearly allied. 

Article 661. 

If the undertaker does not make an appeal against a decision declining membership 
within the proper time, the local insurance office may lay the matter before the 
Imperial Insurance Office; upon application of the accident association such action 
must be taken. 

Article 662. 

If in the case mentioned in article 655 the directorate of the accident association 
designated in the notification accepts the membership of the undertaker, then the direc- 
torate of this association shall notify the directorate of the other accident association. 
The latter can within one month after the receipt of the communication make an'appeal. 

Article 663. 

Extracts from the register of establishments are to be communicated to the directo- 
rates of the sections in regard to the undertakers belonging thereto. 

IV. changes in the undertakers — CHANGES IN THE ESTABLISHMENT AND IN ITS 
membership in the accident ASSOCIATION, 

Article 664. 

Within the time specified in the constitution the undertaker must report changes 
in the person for whose account the establishment is conducted to the directorate of 
the accident association for entry in the registry of establishments. He remains 
liable for the contributions up to the end of the fiscal year during which the change is 
reported without, however, releasing his successor from the liability. 



608 BULLETIN OF THE BUKEAU OF LABOR. 

Article 665. 

The undertaker must report changes in his establishment which are of importance 
for his membership in the accident association to the directorate within the time 
specified in the constitution. 

Article 666. 

If upon application of the undertaker or if on its own accord the directorate believes 
it necessary to refer the establishment to another accident association, then it shall 
refer the establishment to the latter and communicate this fact to the association and 
through the local insurance office to the undertaker with a statement of the reasons 
therefor. 

Article 667. 

Paragraph 1. The head of the establishment and the directorate of the other acci- 
dent association may make protest against the assignment to the directorate which 
has so assigned the establishment; the last-named directorate shall lay the protest 
before the superior insurance office. 

Par. 2. If protest is not made within the proper time, then the establishment shall 
be reinscribed in the register and another membership certificate shall be made out 
or the undertaker. 

Article 668. 

If an accident association demands the assignment of an establishment and the 
undertaker or the accident association to which the establishment has hitherto belonged 
objects to the transfer, then the dkectorate of this accident association shall lay the 
matter before the superior insurance ofiice for decision. 

Article 669. 

If the undertaker makes claim for the change in the registry of his establishment, 
then in case of objection on part of both accident associations he may make application 
for a decision to the superior insurance office. 

Article 670. 

The provisions of articles 666 and 667 for the assignment of an establishment apply 
correspondingly in regard to its release from membership. 

Article 671. 

Paragraph 1. If the application for the transfer or release of membership has been 
granted, then the change m the membership in the accident association shall become 
effective on the date on which the application has first been received by one of the 
directorates of the accident associations affected. If the establishment has been 
transferred or released from membership by the action of the officials, then that date 
shall be used on which the transfer or the release from membership has been com- 
municated to the undertaker. 

Par. 2. The directoi'ates affected and the undertaker may agree upon another date. 

Article 672. 

If the transfer or release from membership is delayed to an important extent because 
the legal or constitutional provisions have not been observed, then upon application 
the superior insurance office may decide that the change in the membershij) of the 
accident association shall become effective on a date earlier than that specified in 
article 671, paragraph 1, however, not earlier than the beginning of the fiscal year 
during which the claim for contributions has not yet lapsed. - - 

Article 673. 

Paragraph I. If single establishments or subsidiary establishments go from one 
accident association to another, then article 643 applies in regard to the transfer of 
the accident burden. 

Par. 2. The accident association taking over an establishment has a claim to a cor- 
responding part of the reserve of the accident association released. This part is to be 
computed according to an average rate which the Imperial Insurance Office shall 



workmen's INSUKAlvrCE CODE OF JULY 19, 1911 — GERMANY. 609 

determine every five years, separately for industrial and agricultural associations, 
according to the amount of the reserves of all the accident associations. 
Par. 3. Articles 645 and 646 are to be applied here. 

Article 674. 

Paragraph 1. The obligation to rnake reports in case of changes in an establish- 
ment which affect the apportionment in the risk tariff (art. 711) and further procedure 
are to be regulated in the constitution. 

Par. 2. If the committee or the directorate of the accident association has to draw 
up and change the risk tariff (art. 707), then the general meeting of the accident associa- 
tion may also transfer to this body the regulation of the obligation to give notice in 
case of these changes in the establishment. 

Par. 3. The undertaker may appeal against the decision which the accident associa- 
tion issues upon the notification of the changes or in acting on its own initiative. 

v. constitution. 

Article 675. 

The accident associations regulate their internal administration and their order 
of business through a constitution which the general meeting of the accident association 
decides upon. 

Article 676. 

Paragraph 1. The preliminary directorate elected by the general meeting for the 
purpose of establishing the organization shall conduct the general meeting and manage 
the business of the accident association until the directorate elected on the basis of a 
valid constitution shall take over the business. 

Par. 2. The preliminary directorate shall consist of a chairman, a secretary, and at 
least three associates. 

Article 677. 

The constitution must specify — 

1. The name, the seat, and the district of the accident association; 

2. The composition, rights, and duties of the du-ectorate; 

3. The form of the declarations of the decisions of the directorate as well as its 

signature on behalf of the accident association, the manner of making deci- 
sions in the directorate, and its representation as to third parties; 

4. The calling of the general meeting of the accident association and its method 

of arriving at a decision; 

5. The right to vote of the members and the examination of their credentials; 

6. The rates for loss of earnings and for traveling expenses which are to be granted 

to the representatives of the insured persons (art. 21); 

7. The representation of the accident association as against the directorate; 

8. The procedure to be followed by the administrative bodies of the accident 

association in rating establishments in classes of the risk tariff; 

9. The procedure in cases of changes in the establishment and of a change in the 

person of the undertaker; 

10. The consequences of shutting down an establishment or of a change in the 

person of the undertaker, especially as to the guaranteeing of his contribu- 
tions, if he shuts down the establishment; 

11. The drawing up, examining, and acceptance of the annual balance sheet; 

12. The administrative action relating to the issuance of the regulations containing 

provisions for accident prevention and for the supervision of the establish- 
ments; 

13. The procedure in case of the reporting and release from membership of insured 

undertakers, of pilots and of other persons insured according to article 548, 
number 3, and article 552, as well as concerning the amount and ascertain- 
ment of the annual earnings of undertakers and of pilots; 

14. The method of publishing notices; 

15. The provisions as to the amendment of the constitution. 

Article 678. 
The constitution may specify — 

1. That the general meeting of the accident association shall be composed of 

delegates; 

2. That the accident association shall be divided into local sections; 

3. That special district agents shall be appointed as local officials of the accident 

association. 



610 BULLETIN OF THE BUREAU OF LABOE. 

Article 679. 

Paragraph 1, If the constitution specifies the above, it must at the same time 
specify — 

The election of the delegates; 

The seat and the district of the sections; . 

The composition and calling of the general meetings of the sections and the man- 
ner of forming decisions ; 
The composition, rights, and duties of the directorates of the sections, the election, 
the districts, and the rights and duties of the special officilils and their sub- 
stitutes. 
Par. 2. The general meeting of the accident association may delegate the delimita- 
tion of the districts, and the election of the district agents and their substitutes, to the 
directorate of the accident association or of the section and may delegate the election 
of the directorates of the sections to the general meetings of the sections. ^ 

Article 680. 

The constitution may empower the directorate of the accident association to impose 
fines up to 25 marks [$5.95] upon undertakers and persons holding equal positions ac- 
cording to article 912 who act ':;ontrary to their duties as stated in the constitution. 

Article 681. 

The constitution requires the approval of the Imperial Insurance Office. If the 
approval is to be denied, then the decision senate shall decide the matter; the reasons 
for the disapproval are to be stated. If the approval is not given, then on appeal the 
Federal Council shall decide. 

Article 682. 

If the approval has been finally denied, then within a time si)ecified by the Imperial 
Insurance Office the general meeting of the accident association shall decide upon a 
new constitution. If no decision is made or if the new constitution is also finally dis- 
approved, then the Imperial Insurance Office shall issue the constitution and direct 
that the necessary steps for its execution shall be taken at the expense of the accident 
association. 

Article 683. 

The constitution may be amended only with the approval of the Imperial Insurance 
Office. If such approval is to be denied, then the decision senate shall decide; the 
reasons for the disapproval are to be stated. If the approval is denied, then upon 
appeal the Federal Council shall decide the matter. 

Article 684. 

Paragraph 1. If the constitution has been approved, then the directorate of the 
accident association shall publish the name and seat of the accident association and 
the districts of the sections in the Reichsanzeiger. 

Par. 2. The same rule is applicable in the case of amendments. 

VI. administrative bodies or the accident association. 

Article 685. 

The board of directors shall administer the accident association in so far as the law 
or the constitution do not provide otherwise. 

Article 686. 

The following matters remain within the power of the general meeting of the accident 
association: 

1. The election of the members of the directorate; 

2. The amendment of the constitution; 

3. The examination and acceptance of the annual balance sheet, if the general 

meeting of the accident association has not appointed a special committee 
for this purpose; 

4. The specification of the amount of the lump sums for loss of time and the rates 

for travel expenses for the members of the official bodies of the accident 
association. 



WORKMEN ^S INSURANCE CODE OF JULY 19, 1911 GERMANY. 611 

Article 687, 

Paragraph 1. Subject to the reservations of articles 13 and 14, whoever belongs to 
an accident association as a member, or holds a place equal to a member (art. 13, par. 2), 
may be elected to the directorate or as a district agent of the accident association, or as 
a delegate in the general meeting of the accident association (art. 678, No. 1). 

Par. 2. Those members of a guild, or of the supervisory council of a stock company, 
of a copartnership with shares (Kommanditgesellschaftauf Aktien,) or of a company with 
limited liability belonging to an accident association, are eligible as members of the 
directorate who have been at least for five years the undertaker or the duly author- 
ized manager of an establishment belonging to an accident association. 

Par. 3. If branches of industry of various kinds or various kinds of establishments 
(such as large, medium, and small establishments) are combined in one accident asso- 
ciation, then they shall as far as possible be represented in the directorate. The con- 
stitution shall specify the particulars. 

Par. 4. The constitution of an accident association may provide that the delegates 
of the insured persons may belong to its directorate, or if the accident association is 
divided into sections, to the directorates of the sections, and that they shall have the 
right to vote. The mining accident association may provide in its constitution that the 
delegates of the insured persons must be elders of a miners' fund. Their election 
shall be made through the delegates elected according to article 858; article 859 is 
applicable in regard to their eligibility. 

Article 688. 

The members of the accident associations may have themselves represented in the 
general meeting of the accident association through other members possessing the right 
to vote or through a duly authorized manager of their establishment. 

Article 689. 

As long as and in so far as the election of the legally authorized official bodies of the 
accident association does not take place, or the legally authorized official bodies refuse 
to perform their duties, the Imperial Insurance Office shall either itself or through 
agents conduct the business at the cost of the accident association. 

vii. employees of associations. 

Article 690. 

Paragraph 1. The general meeting of the accident association shall regulate in ap- 
propriate manner the general conditions of appointment and the legal status of the 
employees of the accident association through service regulations. 

Par. 2. Employees who are employed only on j)robation, for temporary services, 
for preparation, or only in a subsidiary manner without compensation, are only sub- 
ject to the service regulations in so far as the latter provide. 

Article 691. 

The principles stated in articles 692 to 699 shall control in the matter of the service 
regulations. 

Article 692. 

Appointments are to be made through written contracts. 

Article 693. 

Paragraph 1. The right of the accident association to give notice of dismissal may 
not place the employee less favorably than he would be in the absence of an agree- 
ment under the civil law. 

Par. 2. An employee entitled to notice before dismissal may be discharged without 
suchnoticeif an important reason exists therefor. In the case of employees who may 
be dismissed with notice who have been employed longer than 10 years, the notice 
of dismissal may be given only for an important reason. In the latter case it shall also 
be considered as an important reason if the employee, because of a change in the status 
of the accident association or in its business administration, can be spared, not merely 
temporarily; in such cases the employees with the shorter service term of that em- 
ployee class in which the change is necessary shall first be given notice of dismissal. 



612 BULLETIN OF THE BUEEAU OF LABOR. 

Article 694. 

An appointment for life is permissible in so far as the service regulations provide 
therefor. The latter must then also regulate the conditions for life appointments as 
well as the legal status of such employees. 

Article 695. 

The service regulations must specify the salaries which are to be paid as a minimum 
for the separate classes of the employees, with the exception of those specified in article 
690, paragraph 2, as well as the basis for an increase in salary. The regulations shall 
at the same time specify how long the salary shall continue to be paid if the employee, 
without any fault of his own, is prevented from rendering services. 

Article 696. 

Employees who abuse their positions in the service or their official business for the 
purpose of religious or political activity shall be reprimanded by the directorate, after 
an opportunity has been given to defend themselves, and in case of repetition shall be 
dismissed; their dismissal shall require the approval of the Imperial Insurance Office, 
Religious or political activity outside of their official activities, and the exercise of the 
right of association in so far as it does not conflict with the laws, shall not be prevented 
and shall not be considered as a reason either for notice of dismissal or for discharge. 

Article 697. 

If the service regulations grant a right to retirement pension or to benefits for sur- 
vivors, then the regulations shall specify the conditions for the granting thereof. 

Article 698. 

Paragraph 1. Appointments may be intrusted only to the business directors for 
the persons designated in article 690, paragraph 2. The chairman of the directorate 
must then within a time specified in the service regulations, but of not more than six 
months, determine as to further employment according to article 690, paragraph 2. 
For such persons he shall also specify the conditions both of notice of dismissal and of 
discharge. 

Par. 2. In addition the directorate shall decide in regard to the appointment, the 
notice of dismissal and discharge, as well as upon the apportionment to one of the 
classes of employees, the increase in salary, and the granting and disallowance of 
retirement pension and benefits for survivors. 

Article 699. 

The service regulations shall specify the authorities competent for the imposition 
of penalties and the legal remedies against them. Fines may not be imposed for 
amounts higher than the service income of one month. 

Article 700. 

Paragraph 1. Before formulating the service regulations the directorate shall give 
the adult employees a hearing. 

Par. 2. The service regulations require the approval of the Imperial Insurance 
Office. 

Par. 3. If this approval is not given and if within the specified time other service 
regulations are not drawn up or are not approved, then the Imperial Insurance Office 
shall issue the service regulations. 

Par. 4. The same holds true for amendments. 

Article 701. 

Paragraph 1. Decisions of the directorate of the accident association or of the 
general meeting of the accident association which conflict with the service regulations 
must be challenged by the chairman of the directorate in the form of an appeal to the 
Imperial Insurance Office; the appeal acts as a stay. 

Par. 2. If a provision of the contract of appointment conflicts with the service 
regulations it shall be void. 






workmen's insurance code of JULY 19, 1911 GERMANY. 613 

Article 702. 

No provision shall be made granting preference in the filling of vacancies to persons 
in possession of a certificate entitling the holder to a civil-ser\ace position (soldiers 
entitled to civil employment). 

Article 703. 

Paragraph 1. The directorate may on their own responsibility transfer specified 
duties to salaried business managers. 

Par. 2. The Imperial Insurance Office shall specify the details in such cases. 

Article 704. 

The salaries of the employees shall be determined by the directorate in detail in the 
budget. 

Article 705. 

Paragraph 1. In controversies connected with the conditions of service of 
employees who are subject to the service regulations, the Imperial Insurance Office 
(decision senate) shall decide upon appeal if the matter relates to notice of dismissal, 
discharge, fines of more than 20 marks [$4.76], or pecuniary claims. 

Par. 2. Pecuniary claims are subject to the following special provisions: 

Par. 3. Appeal to law is permissible. Suit may only be brought within one month 
after the decision of the Imperial Insurance Office has been made ; the time limit is a 
peremptory time limit in the meaning of article 223, paragraph 3, of the Code of 
Civil Procedure; 

Par. 4. The regular courts shall be required to follow the decisions of the Imperial 
Insurance Office on the question whether, the period of notice of dismissal having 
been observed, a notice of dismissal may be given for an important reason (art. 693, 
par. 2, sentences 2 and 3); 

Par. 5. In questions concerning the determination of fines, an appeal to the regular 
courts is not permissible ; 

Par. 6. On the basis of valid decisions of the insurance authorities, executions shall 
be made according to book 8 of the Code of Civil Procedure. 

VIII. formation of the risk classes. 

Article 706. 

The general meeting of the accident association must form risk classes according to 
the degree of risk of accident for the establishments belonging to the accident asso- 
ciation in the form of a risk tariff and grade the amount of the contributions thereon. 

Article 707. 

The general meeting may authorize a committee or the directorate to draw up and 
amend the risk tariff. 

Article 708. 

Paragraph 1. The risk tariff must be reexamined after not more than two fiscal 
years at first, and thereafter at least for every five-year period with respect to the 
accidents which have occurred. 

Par. 2. If the amendment of the tariff is not intrusted to the directorate, the latter 
must place before the competent official bodies of the accident association the result 
of the reexamination, together with a list of the accidents entitled to compensation 
arranged according to branches of industry. These officials must decide whether the 
risk tariff is to be retained or is to be amended. 

Articlje 709. 

The risk tariff and every amendment thereto shall require the approval of the 
Imperial Insurance Office, to which the list of accidents shall be submitted in the case 
mentioned in article 70S. 

Article 710. 

If the competent official bodies of the accident association do not draw up the risk 
tariff within the time specified to them or if the tariff is not approved, then the Impe- 
rial Insurance Office itself shall draw up the tariff after a hearing of the official bodies 
of the accident association. 

18544°— No. 96—12 18 



614 BULLETIN OF THE BUREAU OF LABOR. 

Article 711. 

Paragraph 1. The accident association assigns the establishments in the risk 
classes for .the duration of the tariff according to provisions of the constitution. 

Par. 2. After the classification of the establishments the accident association may 
reclassify an establishment for the period of the tariff, if the statements of the under- 
taker were incorrect or if a change has taken place in the establishment. 

Par. 3. The undertaker has the right of appeal against the classification. 

Article 712. 

Paragraph 1. The general meeting of the accident association may impose supple- 
mentary charges or grant rebates for the coming tariff period or a part thereof to heads 
of establishments in accordance with the accidents which have occurred in their 
establishments. 

Par. 2. The employer has the right of appeal against the determination of supple- 
mentary charges. 

ix. division and joint carrying of the burden. 

Article 713. 

Paragraph 1. The constitution may provide that the sections shall bear the com- 
pensation for accidents which occurred in their districts up to three-fourths, and in 
the case of the mining accident association a proportion in excess thereof. 

Par. 2. The amounts which thereby become a burden to the sections are to be 
assessed upon their members according to the risk class and the amount of their 
contribution. 

Article 714. 

Paragraph 1. Accident associations may make an agreement to carry in common 
either the whole or a part of the burden of compensation. 

Par. 2 . In such case it must be specified how the common burden is to be distributed 
upon the accident associations affected. 

Article 715. 

The agreement shall require the consent of the general meetings of the accident 
associations affected and the approval of the Imperial Insurance Ofl&ce. It may 
become effective only with the beginning of a fiscal year. 

Article 716. 

Paragraph 1. The general meeting of the accident association shall decide how 
the share of the accident association in the common burden shall be distributed upon 
the individual members. 

Par. 2. If not otherwise provided, it shall be assessed in the same manner as the 
amounts paid for compensation which the accident association according to this law 
is required to pay. 

X. administration op the assets. 

Article 717. 

The Imperial Insurance Office may publish regulations in regard to the safe-keeping 
of the securities. 

Article 718, 

Paragraph 1. The accident association must invest not less than one-fourth of its 
assets in bonds of the Empire or of the federal States. 

Par. 2. The association may invest not more than one-half of its assets in a manner 
otherwise than prescribed in articles 26 and 27. For this purpose it shall obtain the 
approval of the Imperial Insurance Office. 

Par. 3. If an accident association desires to invest more than one-fourth of their 
assets according to paragraph 2 it must in addition have for this purpose the approval 
of the Federal Council, or if the association is subject to the State insurance office, it 
must have the approval of the highest administrative authorties of the federal State. 



workmen's insurance code of JULY 19, 1911 GERMANY. 615 

Article 719. 

Paragraph 1. Such an investment (art. 718, pars. 2 and 3) is permissible only in 
securities; in other ways only for administrative purposes/ only for the avoidance of 
loss of assets, or for undertakings which-r- 

1. Are for the benefit either exclusively or principally of the persons subject to 

the insurance; 

2. Or in so far as they promote the personal credit of the members of the accident 

association in the way of cooperation. 
Par. 2. The Imperial Insurance Office shall specify the particulars for the cases 
mentioned in paragraph 1, No. 2. 

Article 720. 

Paragraph 1. Approval is required for — 
The purchase of pieces of ground valued at more than 5,000 marks [$1,190]; 
The erection of buildings valued at more than 10,000 marks [$2,380]; 
The purchase of necessary articles of furniture the total value of which is more 
than 5,000 marks [$1,190]. 
Par. 2. The approval is not needed for the purchase of pieces of ground on which 
the accident association has made loans in the case of compulsory sale. 

Article 721. 

The accident associations must make reports to the Imperial Insurance Ofiice accord- 
ing to the regulations of the latter, in regard to their business and finances. The Impe- 
rial Insurance Office shall each year draw up a report concerning the total financial op- 
erations of the preceding fiscal year. This report is to be laid before the Reichstag. 

Section Five — Supervision. 

Article 722. 

The Imperial Insurance Ofl5.ce shall exercise supervision of the accident associations. 

Article 723. 

If a State insurance ofiice is created for a federal State, it shall exercise supervision 
of the accident associations which do not extend beyond its territory. 

Article 724. 

For these accident associations, the State insurance office shall take the place of the 
Imperial Insurance Office in matters concerning — 

Controversies concerning the apportioning of several establishments to one acci- 
dent association according to articles 542 and 632; 
Controversies between an accident association and a public corporation in case 

of negotiations in regard to the distribution of assets mentioned in article 625, 

paragraph 5, and the corresponding provisions of article 627, paragraph 3, and 

of article 628, paragraph 4; 
Changes in the status of accident associations (arts. 635 to 648); 
Acceptance in the register of establishments (arts. 660 and 661); 
Changes in the membership of an establishment in the accident association in the 

case mentioned in article 673, paragraphs 1 and 3; 
Approval and drawing up of the constitution (arts. 681 to 683); 
Taking over the business of the accident association (art. 689); 
Service regulations for the employees of the accident association (arts. 690 to 702), 

as well as controversies arising out of their service relations (art. 705); 
Risk tariffs (arts. 706 to 712); 

Joint carrying of the burden of compensation (art. 715); 
Administration of the assets of the accident associations in the cases mentioned 

in articles 717 to 720, but excluding article 719, paragraph 2; 
The collection of contributions and premiums (art. 736, pars. 2 and 3), as well as 

as the building up of the reserve (arts. 741 to 747); 
Guarantees of one having building work done (art. 773); 
Covering of the claims of the Postoffice Department (arts. 781 and 782); 
Branch institutes and insurance associations (arts. 783 to 842) but excluding the 

cases mentioned in articles 799 and 839; 
Additional institutions of the accident associations (arts. 845 to 847); 
Accident prevention and supervision (arts. 848 to 891), but excluding the cases 

mentioned in article 883; 
Reporting the names of the administrative officials (art. 893). 



616 BULLETIN OF THE BUREAU OF LABOE. 

Article 725. 

Paragraph 1. If the matter concerns the cases mentioned herewith, the Imperial 
Insurance Office decides whether an accident association which is subject to another 
State insurance office or to the Imperial Insurance Office, is affected. The State 
insurance office then forwards the documents to the Imperial Insurance Office. These 
cases are the following: 

Controversies relating to the assignment of several establishments to one accident 

association according to articles 542 and 632; 
Changes in the status of the accident associations in the cases mentioned in articles 

640 and 646; _ 

Acceptance in the register of establishments (arts. 660 and 661); 
Changes in the membership of an establishment in the accident association in 

the case mentioned in article 673, paragraphs 1 and 3; 
Joint carrying of the burden of compensation (art. 715). 
Par. 2. If the matter relates to common additional institutions of several accident 
associations (art. 847), then the Imperial Insurance Office remains the competent 
authority for these additional institutions provided that all of the accident associations 
affected are not subject to the same State insurance office. 

Section Six. — Payment op the Compensation — Raising the Funds. 

i. payments through the post office department. 

Article 726. 

Paragraph 1. The accident association shall pay the compensation upon notifica- 
tion of the directorate of the accident association through the Post Office Department, 
and furthermore through that post office in whose district the beneficiary resides. 

Par. 2. The payee shall be notified of the paying office by the directorate. 

Par. 3. If the payee removes his residence, he may make application either to the 
directorate or to the post office of his old place of residence to have the payments 
changed to his new place of residence. 

Article 727. 

Every person who is entitled to keep a public seal is authorized to give out and to 
attest the requisite certificates in such payments. 

Article 728. 

The highest postal authorities may collect from each accident association an advance 
sum. According to the choice of the accident association it shall be transmitted either 
quarterly or monthly to the office designated by the Post Office Department, and 
may not be greater than that amount which the accident association will probably 
have to pay in the current fiscal year. 

Article 729. 

The Imperial Insurance Office may specify in what manner payments are to be made 
to payees who customarily reside in a foreign country. 

Article 730. 

The mining accident association may specify through its constitution that miners' 
associations or miners' funds shall pay the compensation instead of the Post Office 
Department. 

ii, raising the funds. 

Article 731. 

Paragraph 1. The accident associations must collect the means for their expendi- 
tures in the form of members' contributions, which shall cover the needs of the pre- 
ceding fiscal year. 

Par. 2. In the case of the engineering and excavating association (Tiefhau-Berufs- 
genossenscJiaft) the contributions must, in addition to other expenditures, cover the 
capitalized value of the pensions which have become a liability of the accident asso- 
ciation in the preceding fiscal year. The principles for the obtaining of the capitalized 
values are to be determined by the Imperial Insurance Office. 



workmen's INSURAlSrCE CODE OF JULY 19, 1911 GERMANY. 617 

Par. 3. In the case of the branch institutes for building work fixed premiums as 
well as contributions are to be collected from the communes and other unions, and in 
the case of branch institutes and insurance associations for the keeping of riding 
animals or conveyances fixed premiums are to be collected (arts. 783 to 842). 

Article 732. 

Paragraph 1. The members' contributions are to be assessed, first, according to 
the earnings received by the insured persons in the establishments, though the local 
wage rate for adults over 21 years of age must be the minimum, and, second, according 
to the risk tariff. 

Par. 2. If the earnings received during the contribution period exceed an annual 
amount of 1,800 marks [1428.40], then only one-third of the excess shall be included in 
the computation. 

Article 733. 

The constitution may provide that in the assessment of the contributions the 
earnings actually received shall be used in the computation. 

Article 734. 

In the case of establishments which regularly employ not more than five insured 
persons, the constitution may provide that with the consent of the undertaker a 
lump sum shall be paid instead of the computed individual earnings, or that uniform 
contributions shall be paid according to a standard specified by it; the constitution 
shall also specify the principles to be used in these cases. 

Article 735. 

The constitution may provide that in the case of a person giving orders to a home 
worker, he shall pay the contributions of those employed in home work by the home 
worker, and if the latter himself is insured according to the constitution, the person 
giving orders shall also pay for him. 

Article 736. 

Paragraph 1. Contributions may not be collected from members nor shall funds 
from the property of the accident association be employed for purposes other than — 
For covering the cost of the compensation and the cost of administration; 
For the accumulation of a reserve (arts. 741 to 748); 
For the payment of the advances to the post office (art. 728) and for the refunding 

and interest of the floating debt (art. 779) ; 
For rewards in the case of rescuing injured persons; 
For accident prevention ; 

For securing employment for persons injured by accident; 
For the establishment of medical or convalescent institutions; 
For the establishment of institutions of the kind specified in article 607, 
Par. 2. If according to article 720 the approval of the Imperial Insurance Office 
is required for the purposes therein designated, such approval is also required for the 
collection of contributions for such purposes. 

Par. 3, These provisions are correspondingly applicable to insurance associations 
( Versicherungsgenossenschaften). 

Article 737. 

Paragraph 1. Newly created accident associations may collect in advance from 
its members for the first year the funds which are necessary to defray the cost of 
administration and to pay the post-office advance. 

Par. 2. If the constitution does not provide otherwise, these contributions shall be 
based on the number of persons subject to the insurance who are employed in the 
establishments of the members. 

Article 738. 

Paragraph 1. The constitution may provide that the members shall pay advances 
on the contributions (art. 731). 

Par. 2. The constitution may provide that the directorate shall be entitled to 
collect advances from — 

(a) Establishments which apparently will exist only temporarily; 

(b) Individual members who have been repeatedly in arrears in the payment of 

the contributions. 



618 BULLETIN OF THE BUREAU OF LABOR. 

Par, 3. The advances shall be collected from the individual members according to 
the amount of those contributions which were assessed upon them for the preceding 
fiscal year or were paid according to article 734. 

Par. 4. The advances of new members are to be based on the amount which they 
would have had to pay as members, according to the scope of their establishment, for 
the cost of the preceding fiscal year. 

Par. 5. The constitution or the general meeting of the accident association shall 
specify the date of payment; two weeks thereafter the advance must have been paid 
to the directorate. 

Article 739. 

If the highest postal officials make use of their right to collect advances (art. 728)* 
the constitution may provide that the requisite funds, in so far as they are not available 
out of the assessment for the preceding fiscal year (art. 749), areto be collected from 
the members of the current fiscal year through contributions (art. 731). 

Article 740. 

Paragraph 1. The directorate may collect from the undertakers of establishments 
whose seat is located in a foreign country, contributions of double amount and require 
them to give security if they carry on in Germany an establishment subject to the 
insurance for a time only. 

Par. 2. This provision is correspondingly applicable to branch institutes and 
insurance associations for the keeping of riding animals or conveyances. 

Article 741. 

The accident associations must accumulate reserves. 

Article 742. 

Paragraph 1. The reserve shall be formed by means of supplementary charges 
reckoned on the amounts paid out as compensation. 
Par. 2. There shall be collected — 

In the first assessment, 300 per cent; 

In the second, 200 per cent; 

In the third, 150 per cent; 

In the fourth, 100 per cent; 

In the fifth, 80 per cent; 

In the sixth, 60 per cent; 

In the seventh to the eleventh each time 10 per cent less. 
Par. 3. The interest shall also be turned into the reserve. 

Article 743. 

Paragraph 1. After the first 11 years, or if this period had already expired at the 
time of the coming into force of the industrial accident insurance law (Peichs-Gesetz- 
blatt, 1900, p. 585) then from the year 1901 on, the supplementary charge shallbe so 
measured that in the following 21 years the capital of the reserve shall be equal to 
three times the compensation which is to be paid in the year of the last supplementary 
charge. 

Par. 2. If an accident association in the 21 years would have to collect unreasonably 
high supplementary charges, then the Imperial Insurance Office can extend the period 
not more than 10 years. 

Par. 3. The Imperial Insurance Office specifies the amount of the supplementary 
charge which the accident association has to collect. 

Article 744. 

Paragraph 1. The interest on the reserve received in the intermediate period (art. 
743) may be used to cover the current expenditures. After the expiration of this 
period those amounts are to be taken from the interest which are necessary to prevent 
the further increase in the assessments which according to experience would be charged 
on the average on each 100 marks [$23.80] of earnings. The remainder of the interest 
is to be added to the reserve until the reserve is equal to one-half of the capital 
necessary to cover the compensation liabilities at the period in question. 

Par. 2. In special cases the Imperial Insurance Office may specify which part of 
the interest shall be used for the reduction of the assessments and which part for the 
addition to the reserve. 



WORKMEN ^S INSURANCE CODE OF JULY 19, 1911 GERMANY. 619 

Par. 3. The Imperial Insurance Office shall also specify the manner in which the 
capitalized value of the liabilities for compensation is to be obtained. 

Article 745. 

The securities in which the reserve is invested are to be reported at their purchase 
price in determining the assets. 

Article 746. 

With the approval of the Imperial Insurance Office an accident association in case 
of need can draw on the capital of the reserve and also draw on the interest thereof 
before the expiration of the first 11 years. The reserve is then to be restored according 
to regulations of the Imperial Insurance Office. 

Article 747. 

The general meeting of tne accident association may upon application of the directo- 
rate decide to make additional supplementary charges for the reserve at any time. 
Such decisions require the approval of the Imperial Insurance Office. 

Article 748. 

Paragraph 1. Articles 742 to 747 are not applicable to the engineering and excavat- 
ing association. The existing reserve, however, shall be maintained at its present 
amount; the interest thereon can be used to cover the liabilities of the accident 
association. 

Par. 2. With the approval of the Imperial Insurance Office the accident association 
may in case of need draw on the capital of the reserve. It shall then be restored accord- 
ing to provisions of the Imperial Insurance Office. 

III. PROCEDURE in ASSESSMENTS AND COLLECTIONS. 

Article 749. 

Paragraph 1. The directorates of the accident associations must assess upon the 
members the payments which the highest postal authorities prove to have been made 
(art. 777), together with the other expenditures, according to the standard of apportion- 
ment already determined upon. In such case the provisions concerning the division 
and joint carrying of the cost (arts. 713 to 716) are to be considered and the advances 
already collected to be deducted. 

Par. 2. Article 764 applies to the engineering and excavating association ; article 731, 
paragraph 3, article 763, and articles 799 to 842 are applicable to the branch institutes; 
article 731, paragraph 3, and article 842, paragraph 2, are applicable to the insurance 
associations. 

Article 750. 

Paragraph 1. For the purpose of the assessment and the collection of the contri- 
butions each member, unless lump sums are used or uniform contributions are to be 
paid (art. 734) must transmit his wage list within six weeks after the close of the fiscal 
year to the directorate of the accident association. 

Par. 2, This wage list must contain — 

1. The insured persons employed in the establishment during the preceding 

fiscal year and the earnings received by them; 

2. If the wages actually earned are not used as a standard, a computation of the 

earnings which are to be used in the assessment of the contribution; 

3. The risk class in which the establishment is rated. 

Par. 3. The constitution may specify that in place of the individual insured persons 
and the earnings received by them, the wage list shall contain the number of the in- 
sured persons and the total amount of earnings for the whole fiscal year or for shorter 
periods (summary wage list). 

Article 751. 
The constitution may provide — 
That the wage list shall be transmitted either quarterly or semiannually; 
That current wage lists (wage books) shall be kept from which this information 

can be taken; 
That the wage lists (wage books) shall be preserved for three years. 



620 BULLETIN OF THE BUREAU OF LABOR. 

Article 752. 

In the case of members who do not transmit the wage lists punctually or whose lists 
are incomplete, the accident association shall itself either prepare the list or complete 
the same. 

Article 753. 

On the basis of the wage lists, the lump-sum payments and the uniform contributions, 
the directorate of the accident association shall prepare a total list of insured persons 
who have been employed by the members during the preceding fiscal year, and a state- 
ment of the earnings that can be included in the computation which the insured per- 
sons have received . On this basis it shall compute the contribution which falls to each 
member in order to cover the total expenditure. 

Article 754. 

Paragraph 1. To each member shall be sent an extract from the assessment roll 
which shall be drawn up for the distribution of the annual expenditures of the acci- 
dent association, together with the demand, that within two weeks he shall pay the 
contribution determined upon, from which shall have been deducted the advances 
paid, in order to avoid compulsory collection and in the case of voluntary insurance in 
order to avoid exclusion (art. 553), if the constitution permits this step. 

Par. 2. The extract must contain statements which will permit the person required 
to make a payment to verify the computation of the contribution. 

Article 755. 

Paragraph 1. After the transmission of the extract, the accident association can 
then determine the contribution otherwise only if — 

The classification of the establishment in the risk classes is changed at a later time; 
A change in the establishment occurring in the course of the fiscal year becomes 

known afterwards; 
The wage list proves inaccurate. 
Par. 2. If in such cases or on account of failure to report an establishment the acci- 
dent association has lost contributions, then the undertaker shall at a later time pay the 
amount lacking, provided that the claim has not lapsed. 

Article 756. 

In the case of a new or subsequent determination of the contribution the procedure 
is the same as in the case of the first determination. 

Article 757. 

Paragraph 1. Within two weeks the members may make protest against the deter- 
mination of their contributions to the directorate, but remain obliged to make pro- 
visional payment. 

Par. 2. They are not required to make provisional payment if the earnings are 
already contained in the wage list for another accident association and the contri- 
butions which are based on these earnings have been paid to this accident association. 

Article 758. 

Paragraph 1. If the directorate does not comply with the protest or does not com- 
ply to the extent applied for, then an appeal against its decision is permissible only 
subject to article 759. 

Par. 2. Appeals shall be based only upon — 
Mistakes in computation; 

Inadequate consideration of the rebates (art. 712); 
Incorrect rates of earnings; 
Inaccurate rating in a risk class. 
Par. 3. Protests on account of the last two reasons are not permissible if the direc- 
torate has itself drawn up the wage list or completed the same on account of the delay 
of the undertaker. 

Article 759. 

If claims are based on the reasons stated in article 757, paragraph 2, and the 
accident association declines to recognize them as well founded, it must place the 



WORKMElir's INSUEANCE CODE OF JULY 19, 1911 — GERMANY. 621 

matter before the superior insurance oflfice. The latter shall decide to which accident 
association the earnings are to be reported and suspends a divergent determination of 
the contributions even if such determination has already become effective. An 
appeal against the decision of the superior insurance office effects a stay. 

Article 760. 

Paragraph 1. If the contribution is reduced upon the appealing of a claim or upon 
protest, then the amount lost is to be included in the assessment for the succeeding 
fiscal year. 

Par. 2. Excessive payments are to be returned or to be deducted from the contri- 
bution for the succeeding fiscal year. 

Article 761. 

If it develops later that a contribution paid without a protest has been collected 
either wholly or partly without right, then the provisions of articles 757 to 760 are 
correspondingly applicable. 

Article 762. 

Uncollectible contributions shall be charged to the whole membership. They 
shall be covered for the time being out of the available funds of the accident associa- 
tion, or if necessary, out of the reserve, and shall be considered in the assessment of the 
succeeding fiscal year. 

Article 763. 

In the case of accident associations to which a branch institute is attached the 
directorate of the accident association determines which part of the payments called 
for by the highest postal authorities is to be paid by the accident association and 
which part is to be paid by the branch institute. 

Article 764. 

Paragraph 1. The engineering and excavating association shall pay that part which 
falls upon the accident association itself from its available funds. 

Par. 2. At the same time it must compute according to article 731, paragraph 2, 
the capitalized value of the burdens which have arisen for the association in the pre- 
ceding fiscal year and collect the same from its members, together with the other 
expenditures according to the standard of apportionment already determined upon. 
In such case the provisions concerning the division and joint carrying of burdens, arti- 
cles 713 to 716, are to be considered and the advances already collected to be deducted. 

Par. 3. In other matters articles 750 to 763 are applicable. 

Article 765. 

Paragraph 1. If the undertaker of a building operation conducted as a business is 
in arrears with the payment of contributions and the execution procedure shows that 
he is bankrupt, then the local insurance office on application of the directorate of the 
accident association may order, with the right to revoke the same, that the person for 
whose account the building is done as well as subcontractors are in so far liable for the 
contributions during one year after their final determination, as they have arisen 
after the issuance of the order. For such cases the constitution may specify the par- 
ticulars in regard to the keeping of wage lists to determine the amount of wages for 
which the person on whose account the building is being done or the subcontractor is 
liable. 

Par. 2. The liability of subcontractors takes precedence of that of the person for 
whose account the building work is done. 

Article 766. 

Paragraph 1. An order of this kind must clearly designate the undertaker to whom 
it applies, giving his name, residence, and business establishment. The order shall 
be communicated not only to him but also to the police authorities, both of his resi- 
dence and of the seat of his establishment if the latter is in a separate place. 

Par. 2. If the employer changes his residence or the seat of his establishment then 
the police officials shall notify the authorities who are competent for the new place of 
residence or seat of the establishment. 

Par. 3. The police authorities must, on request, give the parties affected information 
concerning the order. 



622 BULLETIN OF THE BUREAU OF LABOR. 

Article 767. 

Paragraph 1, The undertaker must without delay give notice in writing concerning 
the order to the person on whose account the work is done. If he takes over a contract 
for building work then he must give notice thereof in advance. Subcontractors must 
without delay give information concerning the notice to the person giving the order. 

Par. 2. Whoever acts contrary to these provisions shall be punished with confine- 
ment in jail up to one year; in addition a fine up to 3,000 marks [$714] may be imposed. 
If he has acted negligently he shall be punished with a fine up to 100 marks [$23.80]. 
The penalty is only imposed if the person giving the order suffers damage as a result 
of the contravention. 

Article 768. 

The local insurance office shall suspend the order whenever it has been proved to it 
through certificate of the directorate that the undertaker is no longer in the debt of 
the accident association. 

Article 769. 

The superior insurance office decides finally upon appeal against — 
Decrees of the local insurance office; 
Refusals to issue such decrees; 
Decisions of the local insurance office on the cancellation of the decree. 

Article 770. 

In controversies between the accident association and the person on whose account 
the building work is done or the subcontractors in regard to the liability in such cases 
(art. 765) the superior insurance office (decision chamber) shall decide; appeal to the 
regular coui'ts is not permitted. 

Article 771. 

Articles 765 to 770 are correspondingly applicable for establishments conducted as 
a business engaged in hauling, inland navigation, and inland fishing. In such cases 
the proprietor of the apparatus used in the business takes the place of the person on 
whose account the building work is done and of the person giving the order. In case 
there are several proprietors they are liable as collective debtors. 

Article 772. 

Paragraph 1. The highest administrative authorities of the federal State may 
specify that before the beginning of the building work the persons on whose account 
the work is done shall furnish guaranties to the building accident association for the 
payment of the contributions or the premiums. 

Par. 2. They shall also specify at the same time the communes and the building 
operations to which this provision is applicable. 

Par. 3. For such building operations the building permit shall be issued only if 
the accident association certifies that the guaranty has been provided. 

Article 773. 

The accident association shall determine the kind and the amount of the guaranty; 
the amount is to be proportioned according to the probable wage payments for 
the insured building workers. The Imperial Insurance Office shall issue general 
regulations. 

Article 774. 

The person for whose account the building work is done may apply for the return of 
the guaranties from the accident association whenever the building work is carried out 
by building contractors for whom he is not liable (art. 765). 

Article 775. 

The highest administrative authorities may withdraw their regulations (art. 772). 

Article 776. 

In controversies between the accident associations and persons for whom building 
work is done in the cases mentioned in articles 772 to 775, the superior insurance office 
shall decide; appeal to the regular courts is not permissible. 



workmen's insurance code of JULY 19, 1911 GERMANY. 623 

iv. transferring amounts to the post office department. 

Article 777. 

Paragraph 1. Within eight weeks after the end of each fiscal year the highest 
postal authorities shall report to the directorates of the accident associations the pay- 
ments made on their account and shall designate the post ojffices to which these 
amounts are to be refunded. 

Par. 2. After acknowledgment by the directorates of the accident associations of 
the amounts demanded, the highest postal authorities shall notify the accounting 
bureau of the Imperial Insurance Office of the amounts which have been paid in the 
preceding fiscal year for each accident association. 

Par. 3. The accounting bureau balances the actual amounts which are to be 
refunded to the Post Office Department. 

Article 778. 

If an accident association does not have to pay an advance to the Post Office Depart- 
ment, then the directorate of the accident association shall transmit the amounts 
which it has to pay to the Post Office Department within three months after the 
receipt of the demand to the offices designated therein. 

Article 779. 

Payments for compensation which the Post Office Department made in the year 
1909 for an accident association are to be treated as the floating debt of the latter, 
and must have 3^ per cent interest paid thereon, and are to be refunded at the rate 
of 3^ per cent, together with the interest saved. The Empire shall defray two-fifths 
of these amounts of interest and refunding, while the accident associations have to 
transmit three-fifths to the Post Office Department in July of each year, together 
with the partial amounts of the postal advance then due. 

Article 78(3. 

Paragraph 1. The size of the postal advance and the amount to be paid according 
to article 779 shall be determined for each accident association by the accounting 
bureau of the Imperial Insurance Office, and a statement thereof shall be com- 
municated to the accident associations and to the highest postal authorities. 

Par. 2. For the computation of the postal advance the highest postal authorities 
communicate to the accounting bureau the amount of the payments in the pre- 
ceding fiscal year which have been authorized by the directorates of the accident 
associations. Until the amount of the new postal advance has been determined the 
partial amounts shall continue to be paid in the same amounts as heretofore. These 
amounts shall be deducted when the new advance has been determined upon. 

Article 781. 

If the claims of the Post Office Department are not paid punctually by the accident 
associations, then the Imperial Insurance Office, upon application of the Post Office 
Department, shall institute proceedings for compulsory collection. 

Article 782. 

In order to cover the claims of the Post Office Department the Imperial Insurance 
Office shall first make use of the available assets in the treasury of the accident asso- 
ciation. _ In so far as these assets are not sufficient, proceedings for compulsory collec- 
tion against the members of the accident association shall be instituted and continued 
until the arrears are covered. 

Section Seven — Branch Institutes. 

I. branch institutes for the building trades. 

1. Establishment, scope, and organization. 

Article 783. 

Paragraph 1. Those persons shall be insured in the branch institutes attached to 
an accident association of persons carrying on building work, who are employed in 
such work by the undertaker carrying on building work otherwise than as a business 
in the district of the accident association (art. 633, par. 2, No. 1). 

Par. 2. The same shall be applicable in the case of self-insured undertakers engaged 
in such building work. 



624 BULLETIN OF THE BUREAU OF LABOR. 

Article 784. 
The branch institutes may not undertake other kinds of insurance. 

Article. 785. 

In addition to the building work for which they have been established, the branch 
institutes of the building trades accident associations may have transferred to them 
building work on railways, canals, roads, streams, dikes, and other building opera- 
tions in their district if an undertaker engaged in building work not conducted as a 
business (art. 633, par. 2, No. 1) executes such work and if not more than six working 
days are actually covered by each separate piece of work. 

Article 786. 

The administrative bodies of the accident association shall administer the branch 
institute if the constitution of the latter does not provide otherwise (art. 794). 

Article 787. 

Paragraph 1. The income and expenditures of the branch institute are to be 
accounted for separately, and the assets are also to be kept separately. 

Par. 2. A special reserve must be accumulated for the branch institute. It may 
not be used for the purposes of the accident association. 

Article 788. 

Paragraph 1. The rest of the property which is intended for the branch institute 
may be used for th( accident association only with the approval of the Imperial 
Insurance Office. 

Par. 2. The approval for this purpose may only be granted if the part of the prop- 
erty which remains in the branch institute will probably be sufficient to cover perma- 
nently the liabilities already outstanding against the branch institute. 

Article 789. 

In so far as it is necessary the accident association must advance out of its own 
reserve the funds for the business operation of the branch institute. 

Article 790. 

Paragraph 1. The branch institute must collect for the costs of administration such 
sums as are actually required for its separate administration. 

Par. 2. With the approval of the Imperial Insurance Office, a lump sum may in 
addition be imposed on it as its share of the joint costs of administration. 

Article 791. 

The branch institute must share in the advance which the accident association has 
to make to the Post Ofl&ce Department (art. 728) according to the proportion of the 
compensation payments which the Post Office Department in the preceding fiscal 
year has paid out for the accident association and for the branch institute. 

Article 792. 

Paragraph 1. The general meeting of the accident association must establish for 
the branch institute a constitution of its own. 

Par. 2. In the discussions on this subject a representative of the Imperial Insurance 
Office must be present and, upon his demand, must be heard at any time. 

Article 793. 

The constitution of the branch institute must contain provisions concerning — 

1. The obligation to give notice on the part of the undertakers designated in 

article 633, paragraph 2, No. 1, who wish to insure themselves, as well as the 
amount and the computation of the annual earnings of these undertakers; 

2. Delimitation of the rights of the directorate and of the general meeting of the 

accident association in the administration of the branch institute; 

3. Accumulation of the reserve ; 

4. Drawing up, examining, and accepting of the annual balance sheet; 

5. Publication of the annual accounts; 

6. Amending the constitution of the branch institute. 



WOKKMEn's insurance code of JULY 19^ 1911 GERMANY. 625 

Article 794. 

Paragraph 1. The constitution of the branch institute may specify that it shall 
be administered through separate administrative bodies. 

Par. 2. In such case it shall also specify the seat of these administrative bodies, their 
composition, their districts, and the scope of their rights. 

Article 795. 

The general meeting of the accident association may transfer to the directorate of 
the accident association the delimitation of the districts of the separate administrative 
bodies and the election of their members. 

Article 796. 

The constitution of the branch institute and its amendments require the approval 
of the Imperial Insurance Office. If the approval shall be refused, the decision senate 
shall decide the matter; the reasons for the refusal are to be communicated. If the 
approval has been refused, then on appeal the Federal Council shall decide. 

Article 797, 

The directorate of the accident association must publish the districts and the com- 
position of the separate administrative bodies in the Reichsanzeiger. 

Article 798. 

The following building operations shall be insured in a branch institute: 

1. Those operations in which the separate operations actually consume more than 

six working days (longer building work) to be insured at the expense of the 
undertaker (art. 633, par. 2, No. 1), with the use of fixed premiums according 
to the premium tariff (arts. 799 to 824); 

2. Those operations in which the separate operations consume not more than six 

working days (short building work), to be insured at the expense of the com- 
munes or of the unions designated in articles 828 to 830 whose district is 
covered by the accident association; the payments therefor shall be made 
in the form of contributions which shall annually be assessed upon these 
communes or unions according to the expenditure of the preceding fiscal year. 

2. Insurance at the expense of the undertakers — Premiums. 

Article 799. 

Paragraph 1. For each month and not later than three days after the expiration 
thereof the undertakers of longer building operations must submit a report to the 
officials designated by the highest administrative authorities in whose district the 
building work is carried out concerning the following: 

1. The number of working days on which operations were conducted; 

2. The payments made to the insured persons therefor. 

Par. 2. The Imperial Insurance Office shall prescribe the form of this report. 

Article 800. 

Paragraph 1. If this report is not sent in or is incomplete, the authorities shall 
make it out or complete it according to their own knowledge of the conditions. 

Par. 2. For this purpose they may require those subject to this provision to give 
the information within a specified time under penalty of a fine up to 100 marks [$23.80]. 

Article 801. 

Paragraph 1. The authorities must transmit the reports within two weeks after the 
expiration of the quarter of the calendar year through the channels of the local insur- 
ance office to the directorate of the accident association or to the administrative body 
of the accident association designated by the latter. 

Par. 2. In this connection the authorities (art. 799) must certify that nothing is 
known to them concerning the execution of other building work in their district con- 
cerning which reports should be made. 



626 BULLETIN OF THE BUREAU OF LABOR. 

Article 802. 

The tariff of premiuma must show what unit rate must be paid in premiums for each 
one-half mark [11.9 cents] of computable wages or fraction thereof. 

Article 803. 

If the accident association graduates the contributions in the risk tariff according to 
the class of building work, then the same proportion must also be used for the unit 
rates of the premiums. 

Article 804. 

Paragraph 1. The Imperial Insurance Office determines in advance the tariff of 
premiums at least every five years for each accident association after hearing the 
directorate thereof. 

Par. 2. The following factors shall be used as the basis for this purpose: 
The capitalized value of the benefits which a branch will probably have to pay 
on account of accidents in connection with longer building operations, based 
on an annual average ; 
The supplementary charges for the creation of the reserve; 

A lump sum for the costs of administration of the branch institute which are to 
be computed according to the annual average of the preceding tariff period 
after deducting the share for shorter building operations (art. 832). The Impe- 
rial Insurance Office shall specify the details in this connection. 
Par. 3. In this connection the interest on the reserve shall be deducted, provided 
that according to the constitution of the branch institute the interest does not accrue 
to the institute itself. 

Article 805. 

The Imperial Insurance Office shall publish the tariff of premiums in the Reichsan- 
zeiger and in the j)apers which are designated for official announcements of the highest 
or superior administrative authorities in whose district the tariff shall be in force. 

Article 806. 
The tariff shall come into force not earlier than two weeks after its publication. 

Article 807. 

After each quarter of the calendar year the directorate of the accident association 
shall compute on the basis of the tariff of premiums and the reports, the premiums to 
be paid by each undertaker and shall draw up the assessment roll. 

Article 808. 

If the earnings of the insured persons per day of building work are lower than the 
local wage rate specified for adults in the place of employment', then the premiuma 
shall be computed according to the latter. 

Article 809. 

Extracts from the assessment roll are to be forwarded to the communes with the 
request that they shall collect the premiums from the undertakers in their district 
and within one month transmit the same to the competent administrative body of the 
accident association after deduction of the postal fee. 

Article 810. 

Paragraph 1. The accident association must grant a fee to the communes for the 
collection of the premiums, and the amount of this fee shall be determined by the 
highest administrative authorities acting in agreement with the Imperial Insurance 
Office. 

Par. 2. No fee shall be granted for a commune's own building operations. 

Article 811. 

For those premiums which the communes can not prove are actually lost or are 
impossible of collection by compulsory execution, the communes are liable and must 
forward them in advance. 



workmen's insurance code of JULY 19, 1911 GERMANY. 627 

Article 812. 

Paragraph 1. The extract from the assessment roll must contain statements which 
will enable the person required to pay the premiums to verify the computation thereof. 

Par. 2. If it is afterward shown that the report of earnings was incorrect then the 
same regulations shall be applicable for the premiums as in the case of contributions 
due the accident association (arts. 756 and 757). 

Article 813. 

Paragraph 1. The communal authority shall make the extract available for inspec- 
tion to the persons affected, for two weeks, and shall make known the beginning of the 
period in the manner customary in the locality. 

Par. 2. They may also forward the extract to the persons affected instead of leaving 
it open for inspection. 

Article 814. 

The persons required to make payments maj^ "make protest against the computation 
of the premiums to the directorate of the accident association or to the other com- 
petent administrative body (art. 794) within two weeks after the expiration of the 
period stated in article 813, paragraph 1, or after the delivery thereof; the person 
required to make payment, however, is obliged to pay the same for the time being. 
In such cases article 757, paragraph 2, and article 759, are correspondingly applicable. 

Article 815. 

Paragraph 1. Subject to article 814, sentence 2, the protest may only be based 
upon the following: 

Mistakes in computation. 
Incorrect statement of wages. 
Incorrect use of the tariff of premiums. 

The assertion that no obligation for the payment of premiums exists. 
Par. 2. The protest may not be based upon incorrect statement of earnings if the 
authority has itself drawn up the same or completed it because of the failure of the 
person obligated to make such report. 

Article 816. 

Against the decision issued by the superior insurance oflfice upon appeal, further 
appeal is permissible only if the appellant shows that he is not obligated to make 
payments of premiums. 

Article 817. 

If it later develops that an amount paid without protest was collected either wholly 
or in part incorrectly, then articles 814 to 816 shall be correspondingly applicable. 

Article 818. 

Premiums which may not be collected are, in case of need, to be covered out of 
the reserve of the branch institute and are to be considered in determining the next 
tariff of premiums. 

Article 819. 

Paragraph 1. The owner of a building is liable for a period of one year for the 
premiums and other payments of bankrupt undertakers after the obligation has been 
finally determined. 

Par. 2. The liability of the subcontractors takes precedence of that of the building 
owner. 

Article 820. 

In case the building owner has given security to the accident association according 
to official regulations of the State authorities (art. 772), then the association is also 
liable for the premiums and other payments which the building owner must pay 
according to article 798, number 1, as an undertaker, or must pay according to article 
819 on account of bankrupt undertakers. 



628 BULLETIN OF THE BUREAU OF LABOR. 

Article 821, 

If controversies arise between the accident association (branch institute) and build- 
ing owners or subcontractors in regard to the liability, then the superior insurance 
office (decision chamber) shall decide; appeal to the regular courts is not permissible. 

Article 822. 

The accident association may not demand on behalf of the branch institute any 
payments from the undertakers except premiums, fines, and costs, which are to be 
collected in accordance with this law. 

Article 823. 

Paragraph 1. If communes, unions of communes, public corporations, and other 
building owners regularly carry out building operations without making use of other 
undertakers, then upon their application a lump sum based on the average annual 
number of working days can be determined upon in place of the earnings according to 
which premiums are to be computed. 

Par. 2. At the same time the date when the premiums are to be paid must be deter- 
mined. 

Par. 3. In such cases the provisions concerning monthly reports (arts. 799 to 801) 
and the quarterly computation and the collection of the premiums (arts. 807 to 811) 
are not applicable. 

Article 824. 

Whenever the share of the branch institute in the amounts which are to be paid to 
the Post Office Department arise from accident caused by longer building operations, 
the funds for the replacement thereof shall be taken from the available cash in pre- 
miums. 

3. Insurance at the cost of communes. 

Article 825. 

Paragraph 1. The funds for covering amounts paid for compensation and costs of 
administration which accrued to a branch institute on account of accidents in short 
building operations shall be raised by annual assessment upon the communes in pro- 
portion to the population in the districts included in the accident association. 

Par. 2. If the branch institute has participated in the advance of the accident 
association to the Post Office Department, then on this account an advance may be 
assessed upon the communes equal in amount to the contributions of the preceding 
fiscal year. 

Par. 3. Beginning with the fiscal year which follows the last census, the number of 
inhabitants officially determined by it shall be used as a basis. 

Article 826. 

An extract from the assessment roll is to be forwarded to the communes with a 
request for the payment of the amount determined upon within two weeks under 
penalty of compulsory collection. 

Article 827. 

Paragraph 1. The extract must contain statements which will enable those obli- 
gated to make the payment to verify the computation. 

Par. 2. Protests and appeals are subject to the same provisions as in the case of the 
accident association (art. 757, par. 1, arts. 758, 760, and 761); however, protests are 
permissible only if they are based upon mistakes in computation or upon errors in the 
statement of the population. 

Article 828. 

Paragraph 1. The highest administrative authority may decree that unions of 
communes may take the place of the communes or in specified districts several com- 
munes may jointly assume the costs which accrue to them on account of the accident 
insurance with the branch institute. 

Par. 2. This authority shall specify at the same time how such unions shall be repre- 
sented and administered and shall specify the principles upon which the joint cost is 
to be apportioned to the individual communes. 



WOKKMEn's insurance code of JULY 19, 1911 GERMANY. 629 

Article 829. 

The highest administrative authority may in addition provide that administrative 
districts shall take the place of the communes in the assessment and in such case how 
the amount assessed shall be apportioned to the individual communes. 

Article 830. 

Paragraph 1. In so far as the highest administrative authorit}^ has not issued such 
regulations the communes may unite themselves on their own initiative for taking over 
the costs which accrue to them on account of accidents in short building operations. 

Par. 2. They shall at the same time specify how the union is to be represented and 
administered. The union must have the approval of the highest administrative 
authority. 

Article 831. 

The decrees and the agreements of these unions (arts. 828 to 830) are to be commu- 
nicated to the accident associations affected and to the Imperial Insurance Office. 

Article 832. 

The amount of the costs of administration which are to be assessed upon the com- 
munes and the unions shall be determined in a corresponding manner as in the case of 
insurance at the cost of the undertaker (art. 804). 

Article 833. 

Within the individual communes or unions of communes the costs arising out of the 
insurance of short building operations shall be collected in the same way as communal 
taxes. 

Article 834. 

Paragraph 1. The State laws or legal enactments of the individual communes or 
of a union of communes can specify another standard of apportionment and especially 
specify that the owners of land or buildings shall bear the cost. 

Par. 2. Legal provisions of this kind shall require the approval of the superior 
administrative authority. 

Article 835. 

The communes or other unions have no claim to the reserve of the branch institute 
on account of the costs which accrue to them through the insurance of short building 
operations. 

n. BRANCH institutes FOR THE KEEPING OF RIDING ANIMALS AND CONVEYANCES. 

Article 836. 

Paragraph 1. Those persons shall be insured in the branch institute which is at- 
tached to an accident association of undertakers of establishments engaged in hauling or 
inland navigation as a business who are employed in the district of the accident asso- 
ciation in establishments for the keeping of riding animals or conveyances not con- 
ducted as a business (art. 537, Nos. 6 and 7). 

Par. 2. The same rule applies in the case of self -insured undertakers in such activi- 
ties. 

Par. 3. In the case of conveyances on water these activities shall be insured in the 
branch institute of the accident associations for inland navigation; in other cases in 
the branch institute of the accident association for hauling establishments conducted 
as a business: Provided, That the Federal Council does not enact other provisions in 
accordance with article 629, paragraph 2. 

Article 837. 

Paragraph 1. The general meeting of the accident association may provide that 
instead of one several branch institutes may be created for individual areas of their 
district. 

Par. 2. Such provisions shall require the approval of the Imperial Insurance 
Office; they are to be published in the Reichsanzeiger. 

18544°— No. 96—12 19 



630 BULLETIN OF THE BUKEAU OF LABOK. 

Article 838. 

In the branch institutes insurance at the cost of the undertakers (art. 633, par. 2, 
No. 2) shall be for premiums according to a tariff of premiums. 

Article 839. 

Paragraph 1. The undertakers must make a report for each quarter of a calendar 
year and not later than three days after the expiration thereof to the authority in 
whose district the activities are carried on, and who shall be specified by the highest 
administrative authority, concerning the following subjects: 

1. The working days on which operations were conducted; 

2. The payments made to the insured persons therefor. 

Par. 2. The Imperial Insurance Office shall prescribe the form for the report. 
Par. 3. Persons neglecting to make such reports shall be proceeded against as in 
the case of the branch institutes for building work (art, 800). 

Article 840. 

Paragraph 1. The authority shall, within two weeks after the expiration of the 
quarter of the calendar year transmit these reports through the channels of the local 
insurance office to the directorate of the accident association or the administrative 
body of the accident association designated by the latter. 

Par.*2. In connection therewith the authority (art. 839) shall certify that nothing 
further has become known to them concerning the keeping of riding animals or vehicles 
(art. 537, numbers 6 and 7) not conducted as a business, in their district. 

Article 841. 

The tariff of premiums must show what unit rate of premiums must be paid for each 
one-half mark [11.9 cents] or fraction thereof of computable earnings. 

Article 842. 

Paragraph 1. In other matters the provisions for branch institutes for building 
work (arts. 784, 786 to 797, 803 to 818, and 822 to 824) shall be applicable for these 
branch institutes. 

Par. 2. If an insurance association takes the place of a branch institute then articles 
647, 648, and 736 shall be applicable to it, and the provisions for branch institutes 
contained in articles 803 to 818, 822 to 824, 836, paragraphs 1 and 2, and articles 838 
to 841, shall be correspondingly applicable. The insurance association must also 
accumulate a reserve. 

Section Eight. — Additional Institutions. 

Article 843. 

The accident associations may create institutions for — 

1. Insurance against liability for undertakers (art. 633) and persona of like 

status. 

2. Funds providing subsidies to pensions and funds for retirement pensions for 

establishment officials, members of the accident association, insured persons, 
officials of the accident associations, and the relatives of these persons. 

3. The procuring of employment for persons injured by accident. 

Article 844. 

Paragraph 1. The accident association shall be the carrier of these institutions. 
Par. 2. Participation in these institutions is voluntary. 

Article 845. 

Decisions of the general meeting of the accident association: 

Concerning institutions of the kind designated in article 843, Nos. 1 and 2, and 

the by-laws thereof, must have the approval of the Federal Council. 
Institutions of the kind designated in article 843, No. 3, must have the approval 

of the Imperial Insurance Office. 



workmen's insurance code of JULY 19, 1911 GERMANY. 631 

Article 846. 

The supervision of these institutions shall be administered by the Imperial Insurance 
Office. 

Article 847. 

Paragraph 1. Accident associations may unite to form such institutions in 
common. 

Par. 2. The agreement of union may only become effective at the beginning of a 
fiscal year. 

Par. 3. For the approval of such unions article 845 shall be correspondingly 
applicable. 

Section Nine. — Accident Prevention — Supervision. 

I. regulations for accident prevention. 

Article 848. 

Paragraph 1. The accident associations are obliged to issue the necessary regula- 
tions concerning — 

1. The arrangements and orders which the members are required to provide for 

the prevention of accidents in their establishments. 

2. The rules of conduct which the insured persons must observe for the prevention 

of accidents in the establishments. 

Par. 2. Regulations for the prevention of accidents may also be issued for individual 
districts, branches of industry, and kinds of establishments. 

Par. 3. In these regulations it must be specified in what manner they are to be 
made known to the insured persons. 

Par. 4. If workmen are employed in an establishment who are not familiar with 
the German language then the regulations for the prevention of accidents and the 
decrees of the mining inspection which replace them are to be made in another lan- 
guage: Provided, That together 25 persons speak such language. 

Article 849. 

If establishments belong to an accident association and these establishments because 
of their nature should have been apportioned to another accident association (arts. 
540, 542, 631, and 632), then regulations for the prevention of accidents shall be 
issued for these establishments which correspond to the regulations of those accident 
associations to which the establishments because of their nature should have belonged. 

Article 850. 

An appropriate period of time is to be allowed to the members in order to institute 
the'arrangements prescribed for the prevention of accidents. 

Article 851. 

Violations by the members of these regulations may be punished with fines up to 
1,000 marks [$238], by the insured persons with fines up to 6 marks [$1.43]. 

Article 852. 

A draft of the regulations is to be transmitted to the Imperial Insurance Office. If 
the accident association is divided into sections, the directorates of the sections 
affected must in advance render an opinion upon the draft. 

Article 853. 

• Paragraph 1. In the preparation and final decision upon these regulations the 
directorate of the accident association must call in representatives of the insured 
persons who shall have the full ri^ht to vote thereon and shall have the same number 
of votes as the members of the directorate participating. 

Par. 2. The same shall be correspondingly applicable for opinions in regard to 
protective regulations issued on the basis of article 120e, paragrapn 2, of the Industrial 
Code. 



632 BULLETIN OF THE BUREAU OF LABOR. 

Article 854. 

The directorate of the accident association must invite the Imperial Insurance 
Office to the sessions in which the draft of the regulations is to be prepared and decided 
upon. 

Article 855. 

In case regulations for the prevention of accidents or protective regulations on the 
basis of 120e, paragraph 2, of the Industrial Code are applicable for individual sections 
only, then the directorates of these sections shall call in the insured persons for the 
purpose of securing their opinion. In such cases article 853, paragraph 1, shall be 
correspondingly applicable. 

Article 856. 

The draft of the regulations is to be communicated to the representatives of the 
insured persons at the same time that the invitation is sent for the meeting in which 
the regulations are to be discussed, or considered, or decided upon. 

Article 857. 

Once each year the directorate, which shall call in at the same time representatives 
of the insured persons (art. 853, par. 1) shall take cognizance of the reports of the 
technical supervisory officials and shall suggest measures which seem required for the 
improvement of the regulations for the prevention of accidents. In such cases article 
854 is applicable. 

Article 858. 

Paragraph 1. Representatives of the insured persons shall be elected from the 
associates of the superior insurance office in whose district the accident association 
or the section has members. Those associates of the superior insurance office only 
are entitled to election, however, who are competent to act as representatives of the 
insured persons and do not belong within the scope of the agricultural accident insur- 
ance or the navigation accident insurance. 

Par. 2. The mining accident association may in its constitution provide that the 
representatives of the insured persons must be elders of the miners. If this provision 
is enacted the representatives of the instired persons shall be elected from the elders 
of the miners' associations and miners' funds affected. 

Article 859. 

As representatives of the insured persons only those are eligible who are themselves 
insured according to this law against accident and are employed in an establishment 
which belongs to an accident association. In other respects article 12 is applioable. 

Article 860. 

Paragraph 1. The Imperial Insurance Office shall issue the election rules. 
Par. 2. A representative of this office shall conduct the election. 

Article 861. 

For each representative of the insured persons a first and a second alternate must 
be elected. The alternate shall take his place if he is prevented from performing his 
duties and replace him for the remainder of his term of office if he leaves before this 
time, in the order according to which the election results. 

Article 862. 

The Imperial Insurance Office shall decide controversies concerning the validity 
of the election. 

Article 863. 

The chairman of the directorate shall determine the allowance (art. 21) for the repre- 
sentatives of the insured persons. 



workmen's insurance code of JULY 19, 1911 GERMANY. 633 

Article 864. 

Paragraph 1, The regulations for the prevention of accidents must have the 
approval of the Imperial Insurance Office; the decision senate shall decide thereon. 

Par. 2. The minutes of the proceedings of the directorates must accompany the 
application for the approval. The minutes must show how the representatives of the 
insured persons have voted; they must further contain an opinion of the directorates 
of the sections affected. 

Article 865. 

Paragraph 1. An opportunity must be given to the highest administrative author- 
ities affected to express an opinion before the approval is granted. 

Par. 2. Regulations for the prevention of accidents applying to establishments 
which are subject to the mining inspection may be approved only if the highest admin- 
istrative authority acquiesces. 

Article 866. 

Even if the regulations for the prevention of accidents or parts thereof do not apply 
solely to individual sections, the Imperial Insurance Office may order that the direc- 
torates of the sections shall call in the representatives of the insured persons to secure 
their opinion before granting its approval. 

Article 867. 

If the general meeting of the accident association amends the decisions which the 
directorate and the representatives of the insured persons have made, then the Impe- 
rial Insurance Office shall specify whether the directorate, together with the repre- 
sentatives of the insured persons, shall again discuss and decide upon this matter. 

Article 868. 

If the Imperial Insurance Office makes its approval dependent on the amendment 
of the regulations, then it shall also specify whether the representatives of the insured 
persons shall be called in for discussion and for final decision. 

Article 869. 

The directorate of the accident association must communicate the regulations to the 
superior administrative authorities whose districts are affected. 

Article 870. 

The directorate of the accident association is authorized to determine the fines 
imposed upon members of the accident association, and the local insurance office 
(decision committee) for those imposed upon insured persons. The superior insurance 
office (decision chamber) shall decide upon appeal against the imposition of fines by 
the directorate of the accident association. 

Article 871. 

Those decrees which the State officials have issued for specified branches of industry 
or kinds of establishments for the prevention of accidents, must, in advance, be com- 
municated to the directorates of the accident associations or of the sections for their 
opinions, provided that there is no risk in the delay. In such cases the representa- 
tives of the insured persons are to be called in in the same manner as in the discussion 
of the regulations for the prevention of accidents. 

Article 872. 

The police authorities must communicate to the accident association affected those 
orders which they enact for the prevention of accidents according to article 120d, para- 
graph 1, of the Industrial (.'ode. 

Article 873. 

Whenever the matter concerns the issuance of regulations for the prevention of 
accidents which at the same time are intended to assure the safe operation of railways, 
then articles 852 to 856, 866 to 868, 871, and 872 are not applicable. 



634 BULLETIN OP THE BTJKEAU OP LABOR. 

n. SUPERVISION. 

Article 874. 

The accident associations must provide for the execution or the regulations for 
the prevention of accidents. 

Article 875. 

The accident associations are authorized, and upon demand of the Imperial Insur- 
ance OflBice, are obligated to appoint technical supervisory officials in sufficient num- 
ber to supervise the carrying out of the regulations for the prevention of accidents and 
to take cognizance of the arrangements of the establishments in so far as this is of 
importance in regard to membership in the accident association or for the classification 
in the risk classes. For such officials those persons may also be appointed who have 
formerly belonged to the insured establishments as workmen. 

Article 876. 

In order to verify the wage reports which have been handed in, the accident asso- 
ciations may inspect, through their accounting officials, those books and lists from 
which the number of workmen and officials employed and the amount of the wages 
earned are computed. 

Article 877. 

The business of the technical official and of the accounting official may, with the 
approval of the Imperial Insurance Office, be united in one person. 

Article 878. 

The undertakers are obligated to permit the technical supervisory officials of their 
accident association to enter the place of their business during business hours and are 
obligated to lay before the accounting officials the books and lists (art. 876) in such 
place. 

Article 879. 

Paragraph 1. The Imperial Insurance Office may force the undertakers to comply 
with their duties arising out of article 878 upon the application of any person partici- 
pating in the supervision, by the imposition of fines up to 300 marks [171.40]. 

Par. 2. The superior insurance office decides finally upon appeal. 

Article 880. 

The undertaker may demand special experts instead of the technical supervisory 
officials if he fears, on account of the latter's inspection, some damage to his trade 
secrets or other injury to his business activities. 

Article 881. 

Paragraph 1. In such cases the undertaker must, as soon as possible, designate to 
the directorate of the accident association several persons who are competent and 
ready to inspect the establishment at his expense and to give the accident association 
the necessary information. 

Par. 2. The Imperial Insurance Office shall decide, upon request, if the parties 
can not agree in the matter. 

Article 882. 

The local insurance office of the place of residence shall put under oath the members 
of the administrative bodies of the accident associations, the technical supervisory 
and accounting officials, as well as the special expertb, to keep secret all matters which 
become known to them through the supervision of the establishments or through the 
examination of the books or lists, as well as not to make an unauthorized use of business 
and trade secrets. 

Article 883. 

Paragraph 1. The directorate of the accidents association must report the name 
and residence of the technical supervisory and accounting officials to the superior 
administrative authorities affected. 



WOKKMEN's insurance code of JULY 19, 1911 GERMANY. 635 

Par. 2. The directorate must make reports to the Imperial Insurance Office con- 
cerning the activities of the technical supervisory officials and, upon request, to the 
State supervisory officials (art. 139b of the Industrial Code). 

Article 884. 

Paragraph 1. If the supervisory official of the accident association has received 
information concerning orders which the State officials have issued for the prevention 
of accidents, then he may not give orders in conflict therewith. 

Par. 2. If, however, he believes a conflicting order necessary or considers an order 
of the State officials inconsistent with a regulation for the prevention of accidents, he 
shall report thereon to the directorate of the accident association. The latter may 
then call upon the superior officers of the State officials. 

Article 885. 

Paragraph 1. If the State supervisory official considers orders of the accident 
association as conflicting or inconsistent with the regulations for the prevention of 
accidents, then the official shall communicate the fact to the directorate of the accident 
association. 

Par. 2. If the directorate considers the protest unfounded, it may call upon the 
superior officers of the State officials. 

Article 886. 

The directorate of the accident association must transmit to the Imperial Insurance 
Office information concerning all proceedings which concern differences of opinion 
between the two sets of supervisory official. 

Article 887. 

If on account of the negligence of an undertaker the accident association incurs pash 
expenditures on account of the supervision of his establishment or on account of the 
examination of his books and lists then the directorate may charge these costs to the 
undertaker and in addition impose upon him fines up to 100 marks [$23.80]. The 
costs shall also be collected in the same manner as communal taxes. 

Article 888. 

With the consent of the association and under an agreement as to the costs the local 
insurance office may assist the accident association in regard to the supervision of 
those receiving pensions. In this matter the decision committee shall decide. If the 
committee declines then on appeal the superior insurance office shall decide finally. 

Article 889, 

The undertakers are required to permit the permanent members of the Imperial 
Insiu-ance Office authorized by the Imperial Insurance Office to enter their places 
of work during the hours of operation, in order to determine the administration and 
effect of the regulations for the prevention of accidents which have been issued (art. 
848). The Imperial Insurance Office may enforce the compliance of this obligation 
through fines up to 300 marks [$71.40]. 

III. special provisions for building operations and for the keeping of ridinq 

animals and conveyances. 

Article 890. 

Paragraph 1. Regulations for the prevention of accidents are also to be issued for 
activities in connection with building operations not carried on as a business and for 
the keeping of riding animals and conveyances not carried on as a business (art. 537, 
Nos. 6 and 7). _ 

Par. 2. That accident association is competent in whose branch institute the per- 
sons employed in such activities are insured. If they are insured in an insurance 
association, then the latter is competent. 



636 BULLETIN OF THE BUEEATJ OF LABOE. 

Article 891, 

Paragraph 1. Subject to the following provisions, articles 848 to 889 shall be 
applicable also for these activities. 

Par. 2. In case of violations of the regulations for the prevention of accidents, fines 
up to 100 marks [$23.80] may be imposed on the undertakers of short building opera- 
tions. 

Par. 3. In an insurance association, the representatives of the insured persons are 
elected from the associates of the superior insurance office over whose districts the 
accident association or section extends; in this case article 858, paragraph 1, sentence 
2, shall be applicable. 

Section Ten. — Establishments and Activities for the Account of Public 

Bodies. 

Article 892. 

Paragraph 1. If the Empire or a federal State is a carrier of the insurance, then 
it shall take the place of the accident association and assume the rights and duties of 
the administrative bodies of the accident association through administrative authori- 
ties. For the military administration, the latter shall be specified by the highest 
military administrative authority of the division of the army, for the other adminis- 
trations of the Empire, the imperial chancellor, and for the State administration, the 
highest administrative authority. 

Par. 2. The same rule shall be applicable for communes, unions of communes, 
and other public bodies which are carriers of the insurance. The highest administra- 
tive authority shall specify the officials for the execution hereof. 

Article 893. 

Paragraph 1. The Imperial Insurance Office shall be informed concerning the 
administrative authorities. 

Par, 2. The administrative authorities already authorized shall continue to act. 

Article 894. 

If the Empire, the federal State, the commune, the union of communes, or another 
public corporation, is a carrier of the insurance, then the following articles are not 
applicable: 

The provisions relating to changes in the status of the accident association (arts, 
635 to 648); 

The provisions in regard to the constitution of the accident association contained 
in articles 649 to 720; 

The regulations concerning supervision (arts, 722 to 725); 

The provisions concerning the collection of funds as well as concerning the pro- 
cedure in regard to assessments and collections (arts. 731 to 776); 

The provisions in regard to transferring amounts to the Post Office Department 
in articles 781 and 782; 

The provisions concerning branch institutes (arts, 783 to 842); 

The provisions in regard to additional institutions (arts. 843 to_847); 

The provisions in regard to accident prevention and supervision in articles 848 
to 887, and 889 to 891; 

The penal provisions in articles 908 to 910, 912 and 913. 

Article 895, 

Whoever designates the administrative authorities shall also issue the administrative 
regulations in order to execute the provisions of this section. 

Article 896, 

The administrative provisions may extend the insurance obligation to establish- 
ment officials with annual earnings of more than 5,000 marks [$1,190], in so far as the 
latter are not exempt from insurance according to article 554. 

Article 897. 

Paragraph 1. If the administrative authority in order to prevent accidents wants 
to issue regulations with penal provisions covering insured persons, then not less than 
three representatives of the insured persons shall be called in for discussion and advice. 



WOEKMEN^'S INSUEANCE CODE OF JULY 19, 1911 GEBMANY. 637 

Par. 2. A representative of the authority shall conduct the discussion; he may not 
be the immediate official superior of the representatives just mentioned. 

Par. 3. In so far as the matter concerns the issuing of regulations which are intended 
to assure the safe operation of railways, the above is not applicable. 

Section Eleven. — Liability of Undertakers and Their Representatives. 

i. liability to injured persons and survivors. 

Article 898. 

The undertaker (art. 633) is liable to injured persons and their survivors (art. 588 to 
594) even if they have no claim to a pension, according to other legal provisions for 
the compensation of injuries which an accident of the kind designated in articles 
544 and 546 has caused, only if it has been determined by the penal decision that he has 
purposely caused the accident. The liability of the underta,ker is then limited to the 
amount by which such compensation exceeds that of the accident insurance. 

Article 899. 

The same rule is applicable in the case of compensation claims of injured persons 
and their survivors against the authorized agents or representatives of the establish- 
ment and against the overseers of the establishment and of the workmen. 

Article 900. 

The claim may also be made valid if on account of the death, absence, or ot a cause 
other than that which rests in the person of the one obligated, no penal decision has 
been delivered. 

Article 901. 

Paragraph 1. If the regular coiu't must decide in regard to such claims, then the 
court is bound by the decision which has been delivered in a procedure according to 
this law, as to the following points: 

Whether an accident which entitles to compensation has occurred; 
To what extent and by what carrier of the insurance, the compensation is to be 
granted. 
Par. 2. The regular court shall suspend its procedure until the decision in the pro- 
cedure according to this law has been rendered. This, however, does not apply to 
arrests and acts for the time being. 

Article 902. 

Instead of the person entitled to the compensation, the undertakers or persons of 
like status according to article 899, from whom the injured person or his survivors 
demand compensation for injuries, may apply for the determination of the compensa- 
tion according to this law, and may also make use of legal remedies. The lapse of 
time limits which, without their fault, have expired, shall not act against them; this 
shall not apply for time limits of procedure in so far as the undertaker or person of like 
status according to article 899 shall himself conduct the procedure. 

n. liability to accident associations, sick funds, etc. 

Article 903. 

Paragraph 1. If it is determined by a penal decision that the undertaker or 
person of like status according to article 899 has caused the accident either purposely 
or negligently through failure to observe such care to which they are especially obli- 
gated on account of their office, occupation , or industry, then they are liable for every- 
thing which the communes, poor law unions, sick funds, miners' associations, miners* 
funds, substitute funds, and funeral or other relief funds have had to expend becaiise 
of the accident according to the law or constitution. Instead of the pension the 
capitalized value thereof may be demanded. 
Par. 2. They are also liable — 

If it has been determined by the penal decision that in the direction or execu- 
tion of a building operation they have acted contrary to the generally recog- 
nized rules in building work ; 
If the accident has been caused through such violations. 



638 BULLETIN OP THE BUKEAU OF LABOR. 

Par. 3. The provisions, of article 900 in regard to liability without determination 
by penal decision are also applicable for these claims. 

Par. 4. Undertakers and persons of equal status according to article 899 are liable 
to the accident association for its expenditures, even if there has beenno determination 
by penal decision. 

Article 904. 

Paragraph 1. For accidents caused by the persons named below, the following 
bodies are liable as undertakers, if the persons so named have performed duties belong- 
ing to them; the bodies liable and the persons for whom liability attaches are — 

1. A stock company, mutual insurance association, a registered cooperative so- 

ciety, a guild, or other legal person, for a member of the directorate; 

2. A company with limited liability, for a business director; 

3. Any other business corporation, for a partner who is authorized to conduct 

the business; 

4. In the case of the liquidation of a business corporation, a mutual insurance 

association, a registered cooperative society, a guild, or other legal person, 
for one of the liquidators. 
Par. 2. This provision is correspondingly applicable for the Empire, federal States, 
communes, unions of communes, as well as other corporations, foundations, and insti- 
tutions created by public law. 

Article 905. 

Paragraph 1. If the accident has been brought about negligently through failure 
to observe that care, to which the undertaker and persons of equal status (art. 899) 
because of their office, occupation, or industry are especially obligated, then the gen- 
eral meeting of the accident association may refrain from making a claim for the 
accident association. 

Par. 2. The constitution may transfer this right to the directorate. 

Article 906. 

Paragraph 1 . If the directorate desires to make a claim for reimbursement it shall 
communicate in writing its decision to the person liable to make reimbursement. 
The latter may then appeal within one month to the general meeting of the accident 
association. 

Par. 2. If the person to make reimbursement appeals within this time to the 
general meeting of the accident association, suit may be instituted only after the 
decision of the latter, and in other cases only after the expiration of one month with 
a notification. 

Article 907. 

Paragraph 1. Such claims lapse in 18 months after the day on which the penal 
decision has become effective. In those cases in which no penal decision is required 
they lapse within one year after the legal and effective determination of the obligation 
to compensation on the part of the accident association, but at the latest within 5 years 
after the accident. If the general meeting of the accident association is appealed to, 
such action shall act as a stay to the expiration. A new period of expiration may only 
then begin, if the general meeting of the accident association has made a decision 
or if the appeal has been decided otherwise. 

Par. 2. The provisions of article 901, paragraph 1, in regard to the regular courts 
being bound to follow the decision, are also applicable for these claims. 

Section Twelve. — Penal Provisions. 

Article 908. 

Under a proviso that the undertaker was aware of the inaccuracy of the state- 
ments or must have known under the circumstances, the directorate of the accident 
association may impose fines upon employers up to 500 marks [$119] — 

1. If on the basis of the law or of the constitution they have transmitted reports 

for the computation of contributions or premiums or for the classification in 
risk classes which contained actually incorrect statements; 

2. If in the report of the establishment (art. 653) a later date is stated as the time 

of the opening of the establishment or of the beginning of the insurance obli- 
gation than that date on which the establishment was opened or became 
subject to the insurance. 



workmen's insurance code of JULY 19, 1911 GERMANY. 639 

Article 909. 

The directorate of the accident association may in addition impose fines not to 
exceed 300 marks [$71.40] on the undertakers if they do not comply in due time with 
the obligation — 

1. To report the establishment and changes in the establishment, as also to post 

placards in the establishment; 

2. To keep and preserve wage lists (wage books); 

3. To transmit wage reports and the reports for the computation of premiums; 

4. To comply with the provisions of the constitution in regard to the shutting 

down of an establishment and to a change of the undertaker. 

Article 910. 

Paragraph 1. The superior insurance office (decision chamber) shall decide finally 
upon appeals against the determination of fines by the directorate of the accident 
associations. 

Par. 2. The decision chamber shall decide, though not finally, in the cases men- 
tioned in articles 870 and 887 as well as of article 891 in connection with these pro- 
visions. 

Article 911. 

Undertakers or their employees who purposely deduct contributions or premiums, 
either wholly or partly, from earnings or deliberately bring about the same, shall be 
punished with fines up to 300 marks [$71.40] or with imprisonment, if a severer penalty 
has not been incurred according to other legal provisions. 

Article 912. 

Whenever on the basis of this law the undertaker is liable to penalties the follow- 
ing persons shall be considered as having the same status: 

1. The members of the directorate, if a stock company, mutual insurance associ- 

ation, registered cooperative society, guild, or other legal person is an under- 
taker; 

2. The business manager, if an association with limited liability is an undertaker; 

3. All copartners personally liable, provided that they are not excluded from 

representation, if another form of business corporation is the undertaker; 

4. The legal representatives of undertakers not legally competent to transact 

business, or partially so, as well as liquidators of a business corporation, a 
mutual insurance association, a registered cooperative society, a guild, or any 
other legal person. 

Article 913. 

Paragraph 1. The undertaker may transfer the duties laid upon him on the basis 
of this law to business managers; in so far as the matter does not relate to arrangements 
founded on regulations for the prevention of accidents, he may also transfer the duties 
to a supervisory staff or other officials of his establishment. 

Par. 2. If such representatives act in \iolation of those regulations which impose a 
penalty upon the undertaker, then the penalty shall apply to them. In addition to 
them the employer may be penalized in the following cases: 

1. If the violation has taken place with his knowledge; 

2. If in the selection or supervision of his representatives he has not observed 

the required care in the transaction; in these cases no other penalty than a 

fine may be imposed upon the undertaker. 
Par. 3. If the fines which have been imposed by the directorate of the accident 
association can not be collected from the representatives, then the employer is liable 
in their place. His liability is to be specified in fixing the penalty. 

Article 914. 

In the case of insured persons, the fines imposed upon them shall be paid into the 
sick fund if the person penalized belongs at the time of the violation to a sick fund; 
otherwise, it shall be paid into the general local sick fund of his place of employment, 
and where such fund does not exist, then into the rural sick fund. The same shall 
also apply to fines which administrative authorities impose upon insured persons 
(art. 897). 



640 BULLETIN OF THE BUKEAU OF LABOR. 

PART TWO. 

AGRICULTURAL ACCIDENT INSURANCE. 

Section One. — Scope op the Insurance. 

Article 915. 

Paragraph 1. Agricultural establishments (art. 161) are subject to the accident 
insurance. 

Par. 2. The Imperial Insurance Office may specify what branches of industry 
are considered as agricultural establishments. 

Article 916. 

Paragraph 1. If the agricultural undertaker carries on work on his own land or 
on the land of others for his own agricultural establishment without transferring 
this work to another undertaker, then the following shall be considered as parts of 
the agricultural establishment: 

Current repairs to buildings which are used in agricultural operations; 
The cultivation of the ground and other building work for the establishment, 
especially the making or maintenance of roads, dams, canals, and watercourses 
for this purpose. 
Par. 2. If because of public and lawful obligation, the agricultural undertaker 
carries on work for the communes for the making or maintenance of buildings, roads, 
dams, canals, and watercourses, as an undertaker, and these obligations rest upon 
him as an agriculturalist, then they are to be considered as part of his agricultural 
establishment. 

Article 917. 

Paragraph 1. In the meaning of article 915, paragraph 1, gardening and the care 
of parks and gardens as well as cemetery establishments shall be considered as agri- 
cultural establishments in so far as they are not subject to industrial accident insurance. 

Par. 2, Small home gardens, and ornamental gardens which are not worked regu- 
larly, and to a considerable extent with a special labor force and whose products 
are consumed principally by the household are not considered as agricultural estab- 
lishments. 

Article 918. 

The insurance is applicable also to undertakings which the agricultural undertaker 
carries on in addition to his farm but in economic dependence thereon (agricultural 
subsidiary establishments). In this class belong especially those establishments 
which either wholly or principally are intended for the following purposes: 

1. To prepare Or work up products of the farm of the undertaker; 

2. To supply the needs of his farm; 

3. To procure or to work up the products of the earth from his land. 

Article 919. 

Article 918 is not applicable to — 

1. Mines, salt works, concentrating works, shipyards, metallurgical and metal- 

working plants, yards for the preparation of building materials as well as 
to establishments which manufacture or work up as a business either explo- 
sives or explosive articles; 

2. Establishments which the Imperial Insurance Office has declared to have 

the status of factories — 

Because of their considerable scope; 

Because of their special equipment with machinery; 

Because of the number of their industrial workmen. 

Article 920. 

Establishments or activities in inland navigation and rafting are only included in 
the insurance of the principal agricultural establishments if they do not extend 
beyond the scope of local traffic. 



workmen's insurance code of JULY 19, 1911 GERMANY. 641 

Article 921. 

Those activities which because of their nature are subject to the industrial accident 
insurance in a branch institute or an insurance association shall be insured in that 
agricultural accident association to which the undertaker having the activities of the 
same kind belongs: Provided^ That these other activities are of greater extent than 
the former. 

Article 922. 

Article 542 is applicable to the assignment of agricultural and industrial establish- 
ments of the same undertaker to the accident association. 

Article 923. . 

Paragraph 1. In establishments which according to articles 915 to 922 are subject 
to the insurance, the following persons shall be insured against accidents (industrial 
accidents): Provided, That they are employed in these establishments: 

1. Workmen; 

2. Establishment officials whose annual earnings as compensation do not exceed 

5,000 marks [$1,190]. 

Paragraph 2. Helpers, journeymen, and apprentices are considered as workmen. 

Par. 3. In distinction from the usual agricultural workmen, that person shall be con- 
sidered as an artisan who requires special technical skill for his position. This applies 
to foresters, gardeners, gardeners' helpers, millers, brickmakers, wheelwrights, black- 
smiths, carpenters, distillers, engineers, firemen, as well as to helpers and journey- 
men who have gone through a period of technical training and education. The 
persons made subject to the agricultural accident insurance according to article 922 
shall also be considered as artisans. The constitution shall determine who in addition 
to these shall be considered as artisans. 

Par. 4. Acts contrary to regulations do not exclude the assumption of a trade 
accident. 

Article 924. 

The insurance shall include household and other service which the insured persons 
while principally employed in the establishment or in the insured activities (arts. 920 
and 921) are called on to perform by the undertaker or his authorized agent. 

Article 925. 

The constitution may extend this obligation to the following: 

1. Undertakers whose annual earnings do not exceed 3,000 marks [$714] or who 

regularly employ for compensation either no one or at most two persons 
subject to the insurance; 

2. Establishment officials whose annual earnings as compensation exceed 5,000 

marks [$1,190]. 

Article 926. 

The constitution may extend the insurance of undertakers who are principally 
employed in agriculture to such household activities as are connected with agriculture. 

Article 927. 

Paragraph 1, Undertakers may insure themselves against the consequences of 
trade accidents if they do not have more than 3,000 marks [$714] of annual earnings 
or if they regularly employ for compensation either no one or at most two persons 
subject to the insurance. In this case, article 926 is also applicable. 

Par. 2. The constitution may admit them also to self-insurance if they have more 
than 3,000 marks [$714] of annual earnings or if they regularly employ for compensation 
at least three persons subject to the insurance. 

Article 928. 

The provisions of articley 925 to 927 in regard to the insurance of undertakers are 
also applicable to their consorts employed in the establishments. 



642 BULLETIN OF THE BUKEAU OF LABOK. 

Article 929. 

The following articles from the industrial accident insurance are correspondingly 
applicable: 

1. Article 552 for the insurance of other employees in the establishment and of 

strangers in the establishment. 

2. Article 553 in regard to the consequences of nonpunctual payment of contribu- 

tions in the case of voluntary insurance. 

3. Article 554 for the insurance of military persons and of officials. 

Section Two. — Benefits of the Insurance. 

Article 930. 

Articles 555 to 562 from the industrial accident insurance are correspondingly 
applicable concerning the object of the insurance. 

Article 931. 

Paragraph 1. In the computation of the pensions for establishment officials and 

artisans, articles 563 to 566 and 568 are applicable in regard to the annual earnings. 

Par. 2. In addition articles 932 to 935 and 941 are applicable in this connection. 

Article 932. 

If the customary number of working-days in the year is so small that those employed 
in the establishment regularly perform work elsewhere for compensation, then in 
the cases mentioned in articles 565 and 566, for the number of days short of 300 work- 
ing-days the local wage rate which at the time of the accident has been determined 
upon (arts. 149 to 152) for the place of employment of the injured person shall be 
added to the amount computed according to articles 565 or 566. 

Article 933. 

Articles 564 to 566, 568, and 932 are to be correspondingly applied if the annual 
earnings are composed of specified amounts for at least weekly periods. 

Article 934. • 

If the annual earnings of the establishment officials or artisans do not amount to 
300 times the local wage rate (art. 932), then the annual earnings shall be assumed to 
be 300 times the latter. 

Article 935. 

In the case of injured young persons the pension, which shall be computed according 
to the local wage, shall be fixed in that age class in which the injured person belonged 
at the time of the accident, and is to be correspondingly increased as he reaches the 
higher age class. 

Article 936. 

Paragraph 1. In the case of workmen who are not included in articles 931 to 935, 
the compensation shall be fixed according to the annual earnings which the agricul- 
tural workmen at the time of the accident received on an average through agriculture 
and other gainful activities in the place of employment. 

Par. 2. The average annual earnings shall be determined by the superior insurance 
office after a hearing of the local insurance offices; the earnings shall be determined 
separately for men and women, for injured persons under 16 years of age, for those 
from 16 to 21 years of age, and for those who are over 21 years of age. Injured persons 
under 16 years of age (young persons) may, according to article 150, paragraph 2, be 
etill further separated into youths and children. The separation may also be made 
for agriculture and for forestry. 

Par. 3. Before rendering its opinion, the local insurance office shall give a hearing 
to representatives of the injured persons engaged principally in agriculture. 

Article 937. 

In the case of injured young persons, the compensation shall be fixed in the first 
place according to the average annual earnings for that age class in which the accident 
was sustained, and is to be correspondingly increased as the injured persons reach the 
higher age class. 



workmen's insurance code of JULY 19, 1911 GERMANY. 643 

Article 938. 

The pensions for undertakers, as well as for other persons employed in the estab- 
lishment and strangers in the establishment (art. 929, Ko. 1), shall be based on the 
average annual earnings for agricultural workmen (art. 93G) which at the time of the 
accident had been determined for the seat of the establishment.' The constitution 
may provide otherwise. 

Article 939. 

In so far as the annual earnings exceed 1,800 marks [$428.40] the excess shall in 
every case be computed at only one- third. 

Article 940. 

If the accident occurs to a person already permanently partially disabled whose 
compensation is to be computed according to the average annual earnings (art. 936), 
then of the latter only that part shall be used as a basis which corresponds to the per- 
centage of the earning capacity before the accident. 

Article 941. 

For those persons aheady permanently partially disabled, the local wage shall be 
considered as only that fraction of the local wage which corresponds to the degree of the 
earning capacity before the accident. 

Article 942. 

Paragraph 1. The commune must grant sick benefits according to article 182 to an 
injured workman during the first 13 weeks after the accident. In the place of the 
sick benefits, the commune may grant hospital treatment and house money according 
to articles 184 and 186. With the consent of the injured person it may also grant care 
according to article 185, paragraph 1, and deduct therefor not more than one-fourth 
of the pecuniary sick benefit. The local wage of the place of employment (par. 2) 
shall be used as a basic wage. 

Par. 2. The commune upon whom the obligation rests is that of the place of employ- 
ment (arts. 153 to 156); the seat of the establishment, however, is not to be considered 
as the place of employment if the injured person was employed in a forestry estab- 
lishment which extended over the districts of several communes. 

Article 943. 

Paragraph 1. The commune is not compelled to grant sick benefits according to 
article 942 in the following cases: 

1. In so far as the injured person has a claim for similar relief on the basis of the 

sickness insurance or other legal provisions: 

2. If he is exempt from insurance on account of benefits which are of value equal 

to those of the sickness insurance; 

3. So long as he remains in a foreign country. 

Par. 2. If the parties obligated in the first place do not provide the sick benefits to 
the injured person then the commune shall take over the same. The expenditures 
of the commune on this account must be reimbursed by those upon whom the obliga- 
tion rests. 

Par. 3. In such cases reimbursement for sick care, and also for treatment in the 
hospital, shall be three-eighths of the basic wage according to which the pecimiary sick 
benefit of the person entitled thereto is computed, and for maintenance in the hospital 
one-half of the basic wage. If no other basic wage is specified, then the local wage 
of the place of employment shall be used (art. 942, par. 2). 

Article 944. 

Paragraph 1. Upon demand of the commune, the sick benefits must be taken over 
by the rural sick fund, and in the absence of such, by the general local sick fund for 
the place of residence or of abode, . 

Par. 2. The commune must reimburse the expenditures thereof. In such cases 
article 943, paragraph 3, is applicable if a higher expenditure is not proved. 

Article 945. 

Paragraph 1. The accident association may itself take over the course of treat- 
ment (art. 942). 



644 BULLETIN OF THE BUREAU OF LABOR. 

Par. 2. The commune, or subject to articles 1513 and 1516, the parties otherwise 
obligated (art. 943, par. 1, Nos. 1 and 2) must reimburse the accident association in so 
far as the injured person could claim benefits from them. In such cases article 943, 
paragraph 3, is applicable. 

Article 946. 

Paragraph 1. If, in the case of injured persons who are not insured against sickness, 
either on the basis of the imperial insurance or in a miners' sick fund and also have no 
claim for sick benefits according to article 942, it is to be feared that an accident com- 
pensation will have to be granted, then the accident association may, even before 
the expiration of the first 13 weeks after the accident, inaugurate a course of treat- 
ment in order to remove the consequences of the accident or to alleviate the same. 

Par. 2. The association may place the injured person in a medical institution. In 
such cases article 597, paragraphs 2 to 4, are applicable. 

Par. 3. With his consent the association may grant an injured person a course of 
treatment according to article 185, paragraph 1. 

Par. 4. The injured person may demand from the accident association proper reim- 
bursement for the earnings which he lost on account of the course of treatment. 

Article 947. 

The accident association may determine the consequences of the accident within 
the first 13 weeks, even without granting the injured person a course of treatment; 
article 581, paragraph 1, is here correspondingly applicable. 

Article 948. 

Articles 582, 583, paragraph 1, and 584 are applicable in the case of granting accident 
compensation before the expiration of the 13 weeks for the two cases mentioned here- 
with, and in such cases article 583, paragraph 1, is also applicable for the benefits of the 
commune (art. 942) ; these are — 

In the case of the transfer of the claim for pecuniary sick benefit; 
In the case of the accident association being bound by the attitude taken by the 
carrier of the sickness insurance. 

Article 949. 

Paragraph 1, If the matter does not concern a claim for reimbursement, the local 
insurance office decides finally in controversies between the commune and the sick 
fund on account of the taking over of the sick benefits (art. 944).- 

Par. 2. Controversies concerning claims for reimbursement arising out of articles 
943 to 945 shall be decided by judgment procedure. 

Article 950. 

Paragraph 1. Articles 586 to 596 of the industrial accident insurance are applicable 
as regards compensation for damages in fatal cases. 

Par. 2. However, the annual, earnings shall be fixed according to the provisions 
which are applicable in agricultural accident insurance in the case of physical injury 
but with the exception of articles 940 and 941. Article 587 is applicable only if the 
compensation is not computed according to the average annual earnings already 
determined (art. 936). 

Article 951. 

The accident association may grant treatment in a medical institution in place of 
medical treatment and compensation (art. 930 in connection with art. 558). In such 
cases articles 597, paragraphs 2 to 5, and 598 are applicable. *" 

Article 952. 

In addition the provisions of the industrial accident insurance are applicable in 
regard to the following: 

IB-Ouse care (Hauspflege) (art. 599); 

Special relief in case of placing in a medical institution (Heilanstalt) (art. 602); 

Inauguration of a new course of medical treatment (arts. 603 and 604); 

Change of the medical institution (art. 605); 

Injury to the injured person due to improper conduct in violation of orders relating 
to the course of treatment (art. 606); 

Placing of the pensioner in a home for invalids (Invalidenhaus) or similar insti- 
tution (art. 607). 



WORKMEN ^S INSURANCE CODE OF JULY 19^. 1911 GERMANY. 645 

Article 953. 

Paragraph 1. With the approval of the higher administrative authority, the com- 
munes or unions of communes, may by legal enactment specify that pensions up to 
two- thirds of their amount shall not be paid in cash, but in kind. This applies only 
to pensioners who reside in the district: Provided, That these persons or those support- 
ing them receive no wages as agricultiu'al workers, but according to local custom are 
paid either wholly or partly in kind: And provided, That a mutual agreement is reached 
concerning the payment in kind instead of the pensions. 

Par. 2. The value of the commodities shall be determined by the higher administra- 
tive authority according to the average prices. 

Article 954. 

Paragraph 1. The payments in kind shall be granted by the commune of the place 
of residence. The claim to the compensation shall be transferred to the commune to 
the extent of the value of the payments in kind. 

Par. 2. The local insurance office (decision committee) shall decide controversies 
between the commune and the beneficiary. The superior insurance office decides 
finally upon appeal. 

Par. 3. If the claim to the pension has been transferred to the commune finally 
then the accident association shall notify the post office department. 

Artj^cle 955. 

In addition, the provisions of industrial accident insurance are applicable concerning 
the following: 

The new determination of the pension on account of changes in conditions (arts 

608 to 611); 
The maturity of benefits and duration of receipt of pension (arts. 612 and 613); 
The right to benefits after the death of the beneficiary (art. 614); 
The suspension of compensation (art. 615); 
Settlements in the form of capital sums (arts. 616 to 618); 
The relinquishment of a claim for reimbursement and legal rights (arts. 619 and 

The transferring, assigning, execution of the claims, and deductions from the 
claims (arts. 621 and 622). 

Section Three. — Carriers of the Insurance. 

i. accident associations and other carriers of the insurance. 

Article 956. 

Paragraph 1. The accident associations as carriers of the insurance shall include 
the undertakers of the insured establishments. 

Par. 2. The accident association shall be formed according to territorial districts. 
They shall include all establishments of the branches of industry in the district for 
which they have been created. 

Par. 3. Those accident associations which have been created according to article 
18 of the law of May 5, 1886 (Reichs-Gesetzblatt, p. 132) concerning accident and sick- 
ness insurance of persons employed in agricultural and forestry establishments shall 
retain their present status subject to the changes permissible according to article 960. 

Article 957. 

Paragraph 1. The Empire or a Federal State is a carrier of the insurance if the estab- 
lishment is conducted for its account, unless the establishments according to article 
109 of the law mentioned in article 956 belong to the accident associations created for 
them. 

Par. 2. Article 625, paragraphs 2 to 5, of the industrial accident insurance is appli- 
cable for the subsequent entry into the accident association, rewithdrawal, and reen- 
trance therein. 

Article 958. 

The undertaker of an establishment is the person for whose account the establish- 
ment is conducted. 

18544°— No. 96—12 20 



646 BULLETIN OF THE BUKEAU OF LABOR. 

Article 959. 

For establishments which comprise parts, or subsidiary establishments of various 
branches of industry, article 631, paragraph 1, of the industrial accident insurance 
applies correspondingly — 

For the apportionment of several establishments of the same undertaker to one 
accident association, article 632 of the industrial accident insurance is appli- 
cable; 
For the compensation of accidents in establishments of third parties, article 634 
of the industrial accident insurance is applicable. 

ii. changes in the status of the accident association. 

Article 960. 

Paragraph 1. For changes in the status of the accident associations, articles 635 to 
646 of the industrial accident insurance are applicable. 

Par. 2. If the Federal Council gives its approval, the constitution for the new acci- 
dent association shall be decided upon according to articles 20, 21, and 24, paragraph 
3, of the law of May 5, 1886 (Reichs-Gesetzblatt, p. 132). 

Article 961. 

The same provisions as in the case of the industrial accident insurance (arts. 647 
and 648) apply in case of the dissolution of t*he accident associations. 

Section Four. — Organization. 

I. membership and right to vote. 

Article 962. 

Every undertaker is a member of the accident association if his establishment belongs 
to the branches of industry covered by it, and the establishment has its seat in the 
district of the association. 

Article 963. 

Paragraph 1. All the pieces of ground of an undertaker, all the agricultural opera- 
tions of which are served by common farm buildings, shall be considered as a single 
establishment. 

Par. 2. If the agricultural establishment extends over the districts of several com- 
munes, then it shall have its seat in that commune where the common farm buildings 
or the buildings serving its principal purpose are located. The undertaker may make 
an agreement with the communes concerning a different seat for the establishment. 

Article 964. 

Paragraph 1. Several pieces of ground of a forestry establishment, belonging to 
one undertaker which are subject to the same immediate business management (for- 
estry district), shall be considered as a single establishment. 

Par. 2. Pieces of ground of forestry establishments of several undertakers shall be 
considered as separate establishments even if together they are subject to the same 
business management. 

Par. 3. If a forestry establishment extends over a district of several communes, 
then its seat shall be considered to be in the locality where the largest part of the 
forestry area is located. The undertaker may agree with the communes in regard to a 
different seat for the establishment. 

Article 965. 

The membership begins with the opening of the establishment or with the beginning 
of its insurance obligation; the beginning of the membership of the Empire and the 
federal States is regulated according to article 957. 

Article 966. 

If the members or their legal representatives do not possess civic rights, they shall 
have no right to vote. 



workmen's insurance code of JULY 19, 1911 GERMANY. 647 

n. registration of the establishments. 
Article 967. 

Paragraph 1. Each newly opened establishment must be reported by the com- 
munal authority to the directorate of the accident association through the channels 
of the local insurance office. 

Par. 2. The directorate shall examine whether the establishment belongs to the 
accident association. 

Par. 3. If the directorate refuses the membership application, it shall communicate 
the fact to the local insurance office, and the latter may appeal for a decision of the 
Imperial Insurance Office; upon application of the accident association such step 
must be taken. 

III. CHANGES in THE UNDERTAKERS — CHANGES IN THE ESTABLISHMENT AND IN ITS 

membership in the accident association. 

Article 968. 

The undertaker must report to the directorate of the accident association each 
change in the person for whose account the establishment is conducted within the 
period specified in the constitution. The undertaker remains liable for the contri- 
butions up to the end of the fiscal year in which the change was reported without 
thereby releasing his successor from liability. 

Article 969. 

Articles 665 to 673 of the industrial accident insurance are correspondingly appli- 
cable in regard to the undertaker's duty of reporting changes in the establishment 
which are of importance for his membership in the accident association; the same 
articles apply in regard to the transfer and dissolution of the establishment as well as 
to the transfer of the burden of accidents and of a part of the reserves. 

Article 970. 

Paragraph 1. The obligation to report changes in the establishment which are of 
importance in connection with the assessment and the procedure in this connection, 
are to be regulated in the constitution. 

Par. 2. Articles 999 and 1000 are correspondingly applicable in opposing the 
decision which the accident association has issued on the basis of changes reported or 
which it has issued of its own accord. 

iv. constitution. 

Article 971. 

The accident associations shall regulate their internal administration and order of 
business by a constitution which shall be decided upon at the general meeting of the 
accident association. 

Article 972. 

The constitution must specify — 

1. The name, the seat, and the district of the accident association; 

2. The composition, rights, and duties of the directorate; 

3. The form of the declaration of the decisions of the directorate, as well as its 

signature on behalf of the accident association; the manner of making de- 
cisions in the directorate and its representation as to third parties; 

4. The creation of the committee of the accident association to decide upon pro- 

tests (arts. 1000 and 1023); 

5. The composition and calling of the general meeting of the accident associa- 

tion and its method of arriving at decisions; 

6. The right to vote of members and the examination of their credentials; 

7. Representation of the accident association as against the directorate; 

8. The rates for loss of earnings and for traveling expenses which are to be granted 

to the representatives of the insured persons (art. 21); 

9. The standard for the assessment of the contributions and providing that the 

latter are not assessed like taxes, the procedure in valuation and classifi- 
cation. 



648 BULLETIN OF THE BUREAU OF LABOE. 

10. The procedure in case of the opening of new establishments, changes in estab- 

lishments and changes in the person of the undertaker. 

11. The consequences of shutting down the establishment or of a change in the 

person of the undertaker, especially as to the guaranteeing of his contribu- 
tions, if he shuts down the establishment; 

12. The drawing up, examining, and accepting the annual balance sheet. 

13. The administrative action relating to the issuance of the regulations contain- 

ing provisions for the prevention of accidents and for the supervision of the 
establishments. 

14. The procedure in reporting for membership and separation from membership 

of the insured undertakers, and other persons insured according to article 
925, No. 2, and article 929, No. 1, as well as the amount and ascertainment 
of the annual earnings of the undertaker; 

15. The method of publishing notices; 

16. The provisions as to the amendment of the constitution; 

17. Who shall be considered as artisans. 

Article 973. 

The provisions of the industrial accident insurance are applicable in regard to the 
following subjects: 

Divisions into sections and appointment of district agents (arts. 678, Nos. 2 and 3, 

and art. 679); 
Power of the directorate of the accident association to impose penalties (art. 680); 
Drawing up the constitution (arts. 681 to 683). 

Article 974. 

Paragraph 1. If the constitution has been approved, the directorate of the acci- 
dent association must publish the name and seat of the accident association and the 
districts of the sections in the Reichsanzeiger or, if the district of the accident associa- 
tion does not extend beyond the territory of a federal State, in the official gazette of 
the highest administrative authority. 

Par. 2. The same rule applies in the case of changes. 

v. administrative bodies of the accident association. 

Article 975. 

Paragraph 1. Articles 685 to 687 and 689 of the industrial accident insurance are 
applicable as regards the administrative bodies of the accident association. 

Par. 2. The Imperial Insurance Office is, however, not authorized, in the place of 
the accident association, to issue regulations for the prevention of accidents nor to 
appoint technical supervisory officials. 

Article 976. 

Paragraph 1. The general meeting of the accident association is composed of rep- 
resentatives of the members. 

Par. 2. The general meeting must be called into session at least once a year. 

Article 977. 

Paragraph 1. For a specified time the general meeting may transfer the auditing 
and acceptance of the annual balance sheet and the business of the directorate either 
wholly or partly to autonomous bodies. In such cases the agreement of the latter and 
approval of the highest administrative authority is necessary. 

Par. 2. The rights and duties of the administrative bodies of the accident asso- 
ciation shall then be transferred to the autonomous bodies. 

vi. employees of the associations. 

Article 978. 

The provisions of the industrial accident insurance (arts. 690 to 705) are applicable 
as regards employees of the accident association who are not State or communal officials 
and, in the case of the transfer of business, to salaried business managers. 



workmen's insurance code of JULY 19, 1911 GERMANY. 649 

vii. formation of the risk classes. 

Article 979. 

Articles 706 to 710 and 712 of the industrial accident insurance shall be applicable 
as regards the formation of risk classes (arts. 990 to 1004 and 1008). Accident associ- 
ations whose establishments show but little difference in regard to the risk of accident 
may decide not to make use of risk classes. Such decision shall require the approval 
of the Imperial Insurance Office. It may be withdrawn if a list of accidents for the 
separate branches of the industry discloses important differences. 

VIII. division and joint carrying of the burden. 

Article 980. 

Paragraph 1. The constitution may provide that the sections shall defray the 
compensation up to three-fourths for accidents which occur in their districts. 

Par. 2. The amounts which thereby, become a burden upon the sections shall be 
assessed upon their members according to the amount of their contributions. 

Article 981. 

If the assessments are computed on the basis of the land tax, and thereby the 
sections are burdened with more than double the amount which is actually expended 
for them in the form of compensations and costs of administration, then the general 
meeting of the accident association may decide to apportion the excess upon all the 
sections according to the land tax. 

Article 982. 

The provisions of the industrial accident insurance (arts. 714 to 716) are applicable 
for the joint carrying of the burden. 

IX. administration of the assets. 

Article 983. 

The Imperial Insurance Office may issue regulations regarding the safe-keeping of 
securities in so far as the State officials or autonomous bodies do not conduct the busi- 
ness. 

Article 984. 

The provisions of the industrial accident insurance (arts. 718 to 721) are applicable 
in regard to the following: 

The investment of the assets; 

The reports on the business and accounting operations. 

Section Five. — Supervision. 

Article 985. 

Paragraph 1 . Articles 722 and 723 of the industrial accident insurance are appli- 
cable with regard to the supervision of the accident associations. 

Par. 2. This supervision does not extend to the survice conditions of State authori- 
ties or autonomous bodies which administer accident associations. 

Article 986. 

For accident associations subject to the supervision of the State insurance office, 
the latter takes the place of the Imperial Insurance Office in regard to the following 
matters : 

Controversies in regard to the assignment of several establishments to one 
accident association, according to articles 922 and 959 in connection with 
article 632; 
Controversies between the accident association and the Empire or a federal State 
in regard to the distribution of the assets in the cases mentioned in article 957 
in connection with article 625, paragraph 5; 
Changes in the status of the accident associations (arts. 960 and 961); 



650 BULLETIN OF THE BUREAU OF LABOR. 

Membership of the establishment in the accident association and changes in the 
membership (arts. 967 and 969 in connection with art. 673, pars. 1 and 3); 

Approval and drawing up of the constitution (art. 973) ; 

Taking over the business of the accident association (art. 975); 

Service regulations for the employees of the accident association as well as con- 
troversies regarding service conditions (art. 978) ; 

Risk tariffs (art. 979); 

Joint carrying of the cost of compensation (art. 982); 

Administration of the assets of the accident association m the cases mentioned in 
articles 983 and 984 in combination with articles 718, 719, paragraph 1, and 720; 

Collecting the contributions (arts. 1011 in connection with art. 736, pars. 2 and 3) 
as well as the accumulation the reserve (art. 1013) ; 

Covering the claims of the post office department (art. 1028 in connection with 
arts. 781 and 782); 

Additional institutions of the accident association (art. 1029); 

Accident prevention and supervision in the cases mentioned in articles 1030 in 
connection with articles 848 to 889 and 890, paragraph 1, but excluding the cases 
mentioned in article 883 ; 

Reporting of the administrative authorities (art. 1033 in connection with art. 893). 

Article 987. 

Paragraph 1. If the matter concerns the cases mentioned below, then the Imperial 
Insurance Office shall decide, ^f an accident association which is subordinated to 
another State insurance office or to the Imperial Insurance Office, is affected. The 
State insurance office shall then transmit the documents to the Imperial Insurance 
Office. These cases are the following: 

Controversies in regard to the assignment of several establishments to one 
accident association according to articles 922 and 959 in connection with article 
632; 
Changes in the status of the accident association in the cases mentioned in article 

960; 
Membership of the establishment in the accident association and changes in the 

membership (arts. 967 and 969 in connection with art. 673, pars. 1 and 3); 
Joint carrying of the cost of compensation (art. 982). 
Par. 2. If the matter concerns any additional common institutions of several acci- 
dent associations (art. 1029), then the Imperial Insurance Office shall remain competent 
for these additional institutions if all of the accident associations participating are 
not subordinated to the same State insurance office. 

Section Six. — Payment of the Compensation — Raising op the Funds. 

i. payments through the post office department. 

Article 988. 

The provisions of the industrial accident insurance (arts. 726 to 729) are applicable 
in regard to the payments through the Post Office Department. 

II. RAISING OF THE FUNDS. 

1 . General provisions. 
Article 989. 

The accident associations must raise the funds to cover their expenditures by means 
of membership contributions which shall cover the expenditures of the preceding 
fiscal year. 

2. Standard of the labor need and of the risk classes. 

Article 990. 

The contributions shall be assessed according to the following: 
The estimated average need for human labor (labor need) and its vaiue in accord- 
ance with this law. 
The earnings of the establishment officials and artisans as well as the annual 
earnings of undertakers in so far as the services of such insured persons are not 
already included in the estimate. 
The extent of the risk of accident (risk classes). 



workmen's insurance code of JULY 19, 1911 GERMANY. 651 

Article 991. 

Paragraph 1. For each undertaker the annual average number of working days 
shall be estimated which are required to operate his establishment; in this connection, 
the number of workmen in the establishment and the duration of their employment 
shall be considered. 

Par. 2. The constitution may provide that household and other service shall be 
reckoned separately in this connection. 

Article 992. 

Paragraph 1. In making the estimates, the list of undertakers, which was drawn 
up on the creation of the accident association (art. 34 of the law of May 5, 1886, Reichs- 
Gesetzblatt, p. 132) or drawn up at a later time, is to be used as a basis. 

Par. 2. Changes in the establishment are to be considered. 

Article 993. 

Paragraph 1. Permanently employed workmen are to be reckoned as having 300 
working days, while* females employees are to be computed on the basis of the propor- 
tion of their earnings to the average annual earnings of males. 

Par. 2. The ser\dce3 of establishment officials, artisans, and undertakers and their 
relatives not insured, are not to be included in the estimate. 

Par. 3. The constitution may make other provisions. 

Article 994. 

In the case of establishments in which at the most five insured persons are employed 
regularly on full time, the constitution may specify uniform contributions according to 
a standard which it shall determine. 

Article 995. 

The administrative bodies of the accident association shall arrange for the estimates 
and shall classify the establishments in risk classes. The constitution must specify 
the details in this connection. 

Article 996. 

Paragraph 1. The communal authority may compel the undertakers to give infor- 
mation concerning the conditions which are decisive for the estimates of the labor 
need by the imposition of fines up to 100 marks [$23.80], 

Par. 2, If the employer does not supply the information in due time or completely, 
then the communal authority shall correct the list according to their own knowledge. 

Article 997. 

Within two weeks the undertakers must furnish to the administrative bodies of the 
accident association upon demand such further information concerning conditions 
in their establishment and of their workmen as is required for the estimate and classi- 
fication. 

Article 998. 

Paragraph 1. The accident association shall communicate to the communal 
authorities lists containing the following: 

The establishments belonging to it in the commune; 
The important principles and the result of the estimate and classification. 
Par. 2. The communal authority must hold these lists open for inspection of 
persons affected for two weeks, and shall make known the beginning of the period 
in the manner customary in the locality. 

Article 999. 

Within one month after the inspection period the undertakers may make protest 
to the administrative bodies of the accident association which have made the estimate 
or classification on the following points: 

Because their establishment has been included in the list or has not been included ; 
Because the labor need has been estimated or the establishment has been classified, 
or against the manner thereof. 



652 BULLETIN OF THE BUKEAU OF LABOK. 

Article 1000. 

Paragraph 1. The administrative bodies of the accident association shall communi- 
cate the decision in writing to the undertaker in regard to his protest. 

Par. 2. The undertaker may further protest to the committee of the accident 
association (art. 972, number 4) and may make an appeal against the decision of the 
latter to the superior insurance office. 

Article 1001. 

In making the first estimate and classification, the members of the committee of the 
accident association may not participate. 

Article 1002. 

Within the period in which the risk tariff is to be verified the classification and 
estimate are also to be verified (art. 979 in connection with art. 708). 

Article 1003. 

Even before the regular reexamination the accident association may again estimate 
the labor need of an establishment or reclassify the establishment if it develops that the 
reports of the undertaker were incorrect. 

Article 1004. 

For the new estimates and new classifications, articles 990 to 1001 are correspondingly 
applicable. 

3. Standard of the tax rate. 

Article 1005. 

Paragraph 1. If the State legislation does not exclude the relatives of the under- 
taker from the insurance and the standard of the labor need and the risk classes is 
unsuitable, then the constitution may provide that the contributions of the members 
of the accident association may be collected through supplementary charges to the 
direct State or communal taxes. 

Par. 2. For the adoption of such a provision a majority of at least two- thirds in the 
general meeting of the accident association is required. The constitution must in 
such a case also specify the manner in which those members are to be charged for the 
cost of the accident association who do not have to pay the taxes used as a basis, either 
for their whole establishment or a part thereof. 

Article 1006. 

The constitution may specify the uniform minimum contributions which shall not 
be greater than 1 mark [23.8 cents] annually, or, if the undertakers themselves are 
insured, or are included in the insurance (arts. 925 to 928), not more than 2 marks 
[47.6 cents] annually. 

Article 1007. 

Paragraph 1. Special supplementary charges shall be collected together with the 
contributions on account of establishment officials and artisans. The constitution 
shall specify the details in this connection. It must also regulate notification of 
employment and threaten violations with penalties. 

Par. 2. The same applies in the case of undertakers if , for the computation of their 
pensions, an amount higher than the average annual earnings of agricultural workmen 
is used as a basis. 

Article 1008. 

Paragraph 1. Contributions are to be graded according to the accident risk in the 
case of establishments mentioned in article 917, agricultural subsidiary establishments 
and other establishments which, according to their nature, should be subject to the 
industrial accident insurance and, in addition, the activities of the kind mentioned in 
article 921. 

Par. 2. The constitution shall regulate the prerequisites in this connecdon as well 
as the amount of these contributions and the procedure. 



workmen's INSUEANCE code of JULY 19, 1911 GERMANY. 653 

Article 1009. 

Paragraph 1. If the constitution specifies a land tax as the standard, then the 
constitution may impose the payment of the supplementary charges upon those 
persons who by law are subject to the land tax for the parcels of ground of establish- 
ments belonging to the association or would be subject to it if the parcels of ground had 
not been exempt from the tax. 

Par. 2. If, accordingly, a person other than the undertaker pays the contribution, 
then the latter must refund the payment. 

Par. 3. In controversies concerning such repayments the local insurance office 
shall decide in whose district the establishment subject to the insurance has its seat. 
Upon appeal the superior insurance office decides finally. 

4. Other standards. 

Article 1010. 

Paragraph 1. If the prerequisites mentioned in article 1005, paragraph 1, are 
present the constitution may provide for another suitable standard for the collection 
of the contributions, such, for instance, as the following: 
The kind of cultivation ; 
Area in connection with the land tax; 

Net return which the ground as such, together with the buildings and outfit 

belonging thereto and serving the same purpose according to its previous 

economic use under the customary system of farming, may be made to yield 

continuously on an average; 

The productive value which is obtained by multiplying the above return by 25. 

Par. 2. Articles 996 to 1009 are here correspondingly applicable. The constitution 

shall specify the details. 

5. General provisions. 

Article 1011. 

The provisions of the industrial accident insurance are applicable as to the following: 
As to the purpose for which contributions may be collected and the funds may be 

applied (art. 736); 
As to advances upon contributions as well as to advance payment of contributions 
(arts. 737 to 739). 

Article 1012. 

Paragraph 1. Undertakers of small establishments with slight accident risk, which 
employ for compensation persons subject to the insurance only exceptionally, may be 
either wholly or partly exempt from contributions by the constitution which shall at 
the same time specify the procedure for the ascertaining of such undertakers. 

Par. 2. With the approval of the highest administrative authority, the general 
meeting of the accident association may also enact the above. 

Par. 3. In controversies between the accident association and the undertaker in 
regard to exemption from the insurance, the superior insurance office shall decide 
finally. 

Article 1013. 

Paragraph 1. The accident associations must accumulate a reserve. 

Par. 2. Until the reserve equals twice the amount of the annual expenditures each 
year, 2 per cent shall be added to the current assessment. The constitution may pro- 
vide for a higher amount. 

Par. 3. Articles 745 to 747 of the industrial accident insurance apply correspond- 
ingly as regards the reserve. 

III. procedure in assessments and collections. 

Article 1014. 

Article 749, paragraph 1, of the industrial accident insurance applies correspond- 
ingly to the assessment of the expenditures upon members. 

• Article 1015. 

When the assessment of the contributions is based on the tax, the tax for that period 
shall be used as a basis, for which the contributions are assessed. 



654 BULLETIN OF THE BUKEAU OF LABOR. 

Article 1016. 

Paragraph 1. When the assessment of the contribution is made according to the 
labor need and risk classes, each member who has in the preceding year employed 
establishment officials or artisans, must transmit a report to the directorate within six 
weeks after the expiration of the fiscal year, stating the amount actually received by 
each of them during this time or how much is to be included on his account. 

Par. 2. The constitution may permit a summary wage list as described in article 
750, paragraph 3. 

Par. 3. The directorates of the accident association or of the sections shall themselves 
draw up or complete the wage list for members who do not transmit the same in due 
time or completely. 

Article 1017. 

Paragraph 1. In the computation of the contributions, the following shall be used : 
For an establishment official and artisan, that compensation which he is actually 

receiving in the establishment or which is to be reckoned for him; 
For one working day of a workman, the three hundredth part of the average annual 
earnings as determined for adult males over 21 years of age at the seat of the 
establishment. 
For the undertaker, the same annual earnings if the constitution does not provide 
otherwise. 
Par. 2. In so far as the average annual earnings exceed 1,800 marks [$428.40], the 
excess shall be computed at only one-third. 

Article 1018. 

If in making the estimates the services of establishment officials and artisans are 
included, according ta the constitution (art. 993, par. 3), then only that amount of 
the earnings of these insured persons shall be included which is in excess of the average 
annual earnings of the workman. 

Article 1019. 

In the cases mentioned in articles Q94 and 1006 with consideration of the uniform 
contributions, the directorate of the accident association shall compute the contri- 
butions which are apportioned to each undertaker for the purpose of covering the total 
annual expenditure, and shall draw up an assessment roll. 

Article 1020. 

Paragraph 1. Extracts from the assessment roll are to be transmitted to each 
communal authority for the members belonging to its district with the request to col- 
lect the contributions after deduction of the collected advances and to send the whole 
sum within four weeks to the directorate of the accident association. 

Par. 2. The accident association shall on this account pay a compensation, the 
amount of which shall be determined by the highest administrative authority. 

Article 1021. 

Paragraph 1. The extract from the assessment roll must contain statements which 
will permit the person obligated to make the payments to verify the computation of 
the contribution. 

Par. 2. The communal authority shall make the extract available to the parties 
affected for inspection for a period of two weeks, and shall make known the beginning 
of this period in the manner customary in the locality. Instead of leaving the extract 
open for inspection, it may be transmitted to the parties affected. 

Par. 3. If the constitution provides that voluntary insurance shall be discontinued 
if contributions have not been paid in due time, and if it provides that a new appli- 
cation for membership shall be without effect until arrears of contributions have been 
paid (art. 929, number 2), then attention shall be called thereto either in the extract 
or in the communication. 

Article 1022. 

Articles 755 and 756 of the industrial accident insurance are applicable in regard 
to a new determination of the contribution after the»extract from the assessment roll 
has been communicated. A new determination is also permissible if on account of 
incorrect statements of the undertaker, the labor need at a later time has had to be 
newly estimated (art. 1003). 



workmen's IITSURANCE code of JULY 19, 1911 GERMANY. 655 

Article 1023. 

Paragraph 1. Within two weeks after the expiration of the period or after com- 
munication has been made (art. 1021, par. 2) the undertaker may make protest to the 
directorate of the accident association against the computation of the contribution; 
but he remains obligated to make a provisional payment. In such cases article 757, 
paragraph 2, shall be applicable. 

Par. 2. The classification and the estimate may, however, not be contested. Fur- 
ther procedure shall be regulated by article 1000. In such cases article 759 shall be 
correspondingly applicable in regard to the appeal. 

Article 1024. 

If after the protest, appeal, or complaint, the contribution is reduced, then arti- 
cle 760 is applicable concerning the covering of difference and the balancing of the 
excess payment. 

Article 1025. 

If it later develops that a contribution paid without protest was either wholly or 
partly collected without right, then articles 1023 and 1024 shall be correspondingly 
applicable. 

Article 1026. 

If the commune can not prove that the contribution was not actually collected or 
that compulsory collection was without result, than it shall be liable for the contribu- 
tions and must forward them at the same time. 

Article 1027. 

Article 762 is correspondingly applicable in regard to the raising of^contributions 
which can not be collected. Such contributions are to be reimbursed to the com- 
mune which has already forwarded them. 

IV. transferring amounts to the post office department. 

Article 1028. 

The provisions of the industrial accident insurance are applicable as regards the 
transmission of the amounts to the Post Office Department (arts. 777 to 782). 

Section Seven. — Additional Institutions. 

Article 1029. 

The provisions of the industrial accident insurance (arts. 843 to 847) are applicable 
as regards additional institutions of the accident association. 

Section Eight. — Accident Prevention — Supervision. 

Article 1030. 

Paragraph 1. Articles 848 to 857, 859 to 889, 890, paragraph 1, and 891, paragraph 
2, of the industrial accident insurance are correspondingly applicable as regards pre- 
vention of accidents and supervision. 

Par. 2. The representatives of the insured persons shall be elected by the insurance 
representatives of those local insurance offices whose district is covered by the accident 
association or the section. However, only such insurance representatives of the local 
insurance offices are eligible as have been selected as representatives of the insured 
persons and who belong within the sphere of the agricultural insurance. 

Article 1031. 

Paragraph 1. If State authorities or autonomous bodies administer the accident 
associations, they shall summon for discussion and for decision as to regulations for the 
prevention of accidents a like number of employers and representatives of the insured 
persons. 

Par. 2. The representatives of the employers shall be selected by lot, drawn by the 
chairman from the number of the employers' associates engaged in agriculture who are 



656 BULLETIN OF THE BUEEAU OF LABOE. 

attached to the superior insurance offices of the district of the accident association, 
and the selection shall be made in a session of the autonomous bodies or of the 
authority. 

Par. 3. For these representatives articles 861 and 863 shall be correspondingly appli- 
cable; for them and their substitutes, the provisions of articles 16 to 21 and 24 shall 
also be applicable as far as concerns representatives of the employers. 

Article 1032. 

Undertakers are required to permit the members of the administrative bodies of 
the accident association who have been designated for this purpose by their accident 
association to enter their places of work during working hours. Article 879 is here 
correspondingly applicable. 

Section Nine. — Establishments of the Empire and of the States. 

Article 1033. 

Paragraph 1. If the Empire or a federal State is a carrier of the insurance, then 
articles 892, 893, and 895 to 897 of the industrial accident insurance shall be applicable. 
Par. 2. In this case, the following provisions of the agricultural accident insurance 
shall not apply : 

The provisions in regard to changes in the status of the accident associations 

(arts. 960 and 961); 
The provisions concerning the constitution contained in articles 962 to 983 and 

984 in connection with articles 718 to 720; 
The provisions in regard to supervision (arts. 985 to 987); 
The provisions relating to raising funds as well as concerning the procedure of 

assessment and collection (arts. 989 to 1027); 
Article 1028 in connection with articles 781 and 782 of the provisions in regard to 

transmitting amounts to the Post Office Department; 
The provisions in regard to additional institutions (art. 1029) ; 
Article 1030 in connection with articles 848 to 887, 889, 890, paragraph 1, and 891, 
paragraph 2, as well as articles 1031 and 1032 of the provisions in regard to acci- 
dent prevention and inspection. 
Articles 1043, 1044, and 1045 in connection with articles 910, 912, and 913 of the 
penal provisions. 
Par. 3. In place of the constitution, the administrative regulations shall specify 
who shall be considered as artisans. 

Section Ten. — Regulation by State Legislation. 
Article 1034. 

The State legislation may specify how far and under what conditions the two steps 
named below may be taken. Additional provisions of the constitution as regards the 
first case below are thereby not excluded. These two cases are — 

1. How far and under what conditions undertakers, including consorts, may 

be insured; 

2. How far and under what conditions other relatives of the undertaker shall 

be exempt from insurance. 

Article 1035. 

Paragraph 1. The State legislation may also either wholly or partly exempt under- 
takers from the payment of contributions on account of the slight risk of accident or 
the small scope of the establishment, and shall specify the procedure for the ascer- 
taining of such undertakers. 

Par. 2. In controversies between the accident association and the undertaker in 
regard to such exemption, the superior insurance office shall decide finally. 

Article 1036. 

The State legislation may also prescribe higher reserves (art. 1013). 



workmen's insurance code of JULY 19, 1911 GERMANY. 657 

Article 1037. 

The State legislation may regulate the following five subjects at variance with the 
provisions of this law specified below. The following are these five subjects: 

The delimitation of the accident associations; 

The constitution and administration of associations; 

The procedure in case of change in the establishment; 

The standard for the assessment of contributions; 

The procedure in assessment and collection. 
The provisions which may be dej)arted from are the following: 

Articles 5 to 7 in regard to administrative bodies; 

Articles 12, 13, 14, paragraph 2, sentence 2, articles 17 to 21, 23, and 24 in regard 
to honorary offices; 

Articles 28, paragraphs 1 and 2, and article 29, paragraphs 1 and 2, in regard to 
assets; 

Article 967 in regard to reporting of establishments; 

Articles 968, 969, in connection with articles 665, 666, 667, paragraph 2, and arti- 
cles 669 to 672 as well as article 970 in regard to change of the undertaker, 
to reporting changes in the establishment and in regard to additional procedure; 

Articles 971 to 974 in regard to the constitution. 

Article 975, paragraph 1, in connection with articles 685, 686, Nos. 3 and 4, and 
687 to 689, and also article 976, paragraph 1, and article 977, paragraph 1, in 
regard to the administrative bodies of the accident association. 

Article 978 in regard to employees of the accident association. 

Article 979 in regard to the formation of risk classes. 

Articles 980 to 982 in regard to dividing and the joint carrying of the cost. 

Articles 990 to 1010 in regard to raising the funds. 

Articles 1014 to 1027 in regard to the procedm'e in assessment and collection. 
In addition the State legislation may change various provisions of this law and enact 
the following: 

Designate the administrative bodies which shall administer the accident associa- 
tion and take cognizance of the rights and duties which this law imposes upon 
directorates. 

Transfer the investigation of the circumstances of the accident to the local insur- 
ance office. 

Article 1038. 

If the State legislation contains provisions based upon the authorization of article 
1037, it shall also specify the following: 

1. The representation of the accident association in the investigation of accidents 

(art. 1562). 

2. The administrative body with which the claim for compensation shall be filed 

(arts. 1546, 1548, 1584, and 1585) and which shall determine the compensation 
and issue the decision or final decision thereon (arts. 1568, 1569, 1583, and 
1606). 

3. The administration of the assets (art. 25, par. 2, arts. 26, 27, 983 and 984 in 

connection with arts. 718 to 720). 

4. The persons, excepting the technical supervisory officials and the special ex- 

perts (art. 1030 in connection with arts. 875, 880, 881), who are subject to the 
penal provisions concerning the violation of trade secrets (arts. 142 to 144). 

Article 1039. 

If by any State legislation use is made of the right to delimit accident associations, 
then in the case of changes in the status of the accident associations the highest admin- 
istrative authority shall take the place of the Federal Council if the establishments 
affected all have their seat in the federal State. 

Article 1040. 

Paragraph 1. If an accident association created under the State law is to be dis- 
solved on account of insolvency, and its establishments apportioned to other accident 
associations whose establishments all have their seats in the federal State, then the 
highest administrative authority of that State shall be competent as regards dissolu- 
tion and apportionment. 

Par. 2. Upon dissolution of the accident association its rights and duties are 
assumed by the federal State. 



658 BULLETIN OP THE BUBEAU OF LABOR. 

Article 1041. 

Paragraph 1. If a federal State has joined its territory, either wholly or partly, to 
the accident association of a second State with the consent thereof, and the latter has 
made use of the right granted in article 1037, then for this accident association the 
provisions of the State laws of the designated second State shall be applicable. 

Par. 2. If the State included has also made use of its rights under article 1037, then 
the provisions of the federal State in which the accident association has its seat shall 
be applicable. The two State governments shall agree on the seat of the association. 

Par. 3. If the Federal Council dissolves an accident association of this kind as being 
insolvent, then the rights and duties of the association shall be transferred to the Fed- 
eral States affected according to the proportion of the contributions which were paid 
in the last fiscal year. 

Par. 4. If the federal States affected can not agree on these matters, the Federal 
Council shall decide the matter upon appeal. 

Section Eleven. — Liability of Undertakers and their Representatives. 

Article 1042. 

Paragraph 1. The provisions of the industrial accident insurance (arts. 898 to 907) 
are applicable as regards the liability of undertakers and their representatives. 

Par. 2. Claims for reimbursement for damages suffered through accident, which the 
insured person has according to law for the first 13 weeks after the accident, are retained 
if the injured person does not have a claim to the benefits of sickness insurance from 
a sick fund, a miners' sick fund, or a substitute fund, or is exempt from insurance 
because of being entitled to benefits of equal value. 

Section Twelve. — Penal Provisions. 

Article 1043. 

Paragraph 1. The directorate of the accident association may impose upon under- 
takers fines up to 500 marks [$119] if the four classes of reports specified below contain 
statements of facts which the undertakers knew to be incorrect or under the circum- 
stances must have been aware of the fact. These are the following: 

1. Lists of salaries or wages which must be handed in according to article 1016 

for the purpose of the assessment of the contribution; 

2. Explanations which must be transmitted to the competent officials of the acci- 

dent association for the purpose of apportioning the establishment to the risk 
classes; 

3. Reports which they have furnished according to article 996 for estimating the 

labor need or according to article 997 in regard to conditions of their estab- 
lishment and their labor force; 

4. Reports or notices which they have furnished according to article 968 concern- 

ing the change of the undertaker or according to articles 969 and 970 concern- 
ing changes in the establishment. 
Par. 2. Paragraph 1 is correspondingly applicable as regards reports, explanations, 
and information which undertakers must give for the apportionment of the contribu- 
tions under the standard specified in article 1010. 

Article 1044. 

The directorate of an accident association may in addition impose fines up to 300 
marks [S71.40] upon undertakers if they do not in due time comply with the following 
obligations: 

1. Transmit the statements designated in article 1043, paragraph 1, numbers 1, 3, 

and 4 and paragraph 2 ; 

2. Comply with the provisions of the constitution in regard to the shutting down 

of establishments and changes of undertakers. 

Article 1045. 

The following provisions of the industrial accident insurance are correspondingly 
applicable: 

Article 910 concerning the protest against the determination of fines by the direc- 
torates of the accident association; 
Article 911 concerning the deduction of the contributions from the earnings; 



WOEKMEn's insurance code of JULY 19, 1911 GERMANY, 659 

Article 912 in regard to the punishment of persons of equal status mth under- 
takers; 

Article 913 concerning penalties in the case of transfer of the obligations of under- 
takers; 

Article 914 concerning the funds to which the fines accrue. 

PART THREE. 

NAVIGATION ACCIDENT ASSOCIATION. 

Section One. — Scope op the Insurance. 

Article 1046, 

The following persons are insured against accident: 

1. If they are employed upon seagoing vessels as masters, seamen, engineers, stew- 

ards, or belonging to the ship's crew in another capacity (seamen); masters 
are included, however, only if they are employed for a compensation ; 

2. If they are employed upon German seagoing vessels in inland harbors or upon 

inland canals or streams without belonging to the ship's crew, provided they 
are not otherwise insured against accident upon the basis of the imperial 
insurance ; 

3. If they are employed in inland establishments conducting floating docks and 

similar operations as well as in German establishments for pilot service, for 
the rescue or salvage of men or commodities in case of shipwreck, for the 
watching, lighting, or maintenance of waters for the service of marine traflic. 

Article 1047. 

A sea voyage (art. 163) includes the following: 

1. A voyage upon the sea outside of the limits specified in article 1 of the admin- 

istrative provisions of November 10, 1899, in connection with article 25 of 
the flag law of June 22, 1899; 

2. Voyages upon bays, inclosed bays {Haffen), and shoals of the sea. 

Article 1048. 

Voyages upon other waters which are connected with the sea are not considered as 
sea voyages, even if made by seagoing vessels. 

Article 1049. 

The crews of vessels which are used for fishing of the kind described in article 1048, 
within the limits determined by the Federal Council, are also insured against accident . 

Article 1050, 

If it is doubtful whether establishments are subject to the navigation accident 
insurance, then the Imperial Insurance Office shall decide thereon after a hearing 
of the directorate of the accident association. 

Article 1051. 

The navigation accident insurance is not applicable to establishments engaged in 
marine navigation and other establishments included in articles 1046 and 1049 
which, because they are important parts of another establishment, are subject to the 
industrial accident insurance (art. 540, No. 2). 

Article 1052, 

Paragraph 1. The insurance applies to accidents during operations, inclusive of 
accidents which occur during these operations and which are caused by natural 
events (industrial accidents). 

Par. 2. Acts contrary to regulations do not exclude the assumption of a trade 
accident. 

Article 1053. 

The insurance is in force for the time from the beginning to the end of the service 
relation, including transportation from land to vessel and from vessel to land . 



660 BULLETIN OF THE BUKEAU OF LABOR. 

Article 1054. 

The insurance also covers the following: 

1. Accidents during operations to persons insured according to articles 1046 and 

1049 sustained upon a vessel subject to the navigation accident insurance 
upon which they are employed, but to whose crew they do not belong. 

2. Accidents to German seamen during free return transportation, or transporta- 

tion upon German seagoing vessels which is granted to them in accordance 
with the Commercial Code or Navigation Code (Reichsgesetzblatt, 1902, p. 
175), or according to the law relating to the obligation of vessels in the mer- 
chant marine as to returning seamen to home ports (Reichsgesetzblatt, 
1902, p. 212). 

Article 1055. 

In the case of change of flag, the service relation is regarded as ended on that date 
on which the insured person may ask for his discharge. The change of flag is to be 
communicated to the insured persons. The communication must be entered in the 
ship's log by the captain, and the insured persons must attest the entry. 

Article 1056. 

Excluded from insurance are accidents sustained by the insured person in the 
following cases: 

1. While he is not on board contrary to orders; 

2. While he is on land on leave for his private affairs. 

Article 1057. 

The insurance also includes the following: 

1. Household and other service to which the insured persons who are principally 

engaged in the establishment have been assigned by the undertaker or by 
his representatives. 

2. Service rendered by insured persons in connection with the rescue or salvage 

of men or goods. 

Article 1058. 

The undertakers of industrial establishments are also insured in the following 
cases: 

1. In sea navigation, if the seagoing vessel has not more than 50 cubic meters 

[65.40 cubic yards] total capacity, and has neither the appurtenances of 
larger seagoing vessels nor is arranged to be driven by steam or other machine 
power, 

2. Fishing on the high seas with vessels which the Federal Council has not already, 

in accordance with article 1, paragraph 5, of the law of July 13, 1887 (Reichs- 
Gesetzblatt, p. 329) placed under the accident association as being steamers 
engaged in deep-sea fishing or as being herring luggers. 

3. Fishing of the kind designated in article 1049. 

Par. 2. The insurance obligation of the undertaker exists only if he belongs to the 
crew of the vessel, and in the establishment there is regularly employed for compen- 
sation either no one or at the most two persons subject to the insurance. 

Article 1059. 

The constitution may also extend the insurance obligation to shipowners who belong 
to the crew of the vessel, and when in the establishment there is regularly employed 
for compensation either no one or at the most two persons subject to the insurance. 

Article 1060. 

The proprietor of a seagoing vessel is the shipowner (Reeder), or if a shipowning firm 
{Reederei) exists, then the firm itself (art. 489 of the Commercial Code). 

Article 1061. 

Such undertakers of insured establishments which are not already insured accord- 
ing to these provisions, and pilots who carry on their business on their own account, 
can insure themselves against the consequences of industrial accidents. 



workmen's INSUEANCE code of JULY 19, 1911 GERMANY. 661 

Article 1062, 

The provisions of articles 1058, 1059, and 1061 in regard to the insurance of the 
undertaker are also applicable for consorts employed in the establishment. 

Article 1063. 

The insurance covers the annual earnings up to 5,000 marks [|1,190], inclusive 
The constitution may extend the insurance beyond this sum. 

Article 1064. 

The following articles of the industrial accident insurance are coiTespondingly 
applicable: 

1. Article 552 for the insurance of other employees in the establishment and 

strangers in the establishment. 

2. Article 553 for the consequences of failure to make prompt payment of contri- 

butions in the case of voluntary insurance. 

3. Article 554 for the insurance of persons in military service and of officials. 

Section Two. — Benefits of the Insurance, 
Article 1065. 

Paragraph 1. Articles 555 to 562 of the industrial accident insurance are corre- 
spondingly applicable as regards the benefits of the insurance; contraventions of 
article 93, paragraphs 2 and 3 and of articles 95 to 97 of the Navigation Code are not 
considered as misdemeanors in the meaning of article 557, paragraph 1. 

Par. 2. In so far as there is a legal obligation of the shipowner to provide sick relief, 
then the obligation to provide compensation by the accident association shall begin 
when the obligation of the shipowner ends. 

Article 1066. 

In computing the pension of insured persons who belong to the accident association 
(art. 1118) the annual earnings are to be determined according to articles 1067 to 
1079, 1081 and 1082. 

Article 1067. 

With the exception of persons employed in establishments engaged in towing and 
lighterage, the average rate of monthly cash wages (Heuer) at the time of the accident 
granted on the mustering in or registering, multiplied by 11, shall be considered as 
the annual earnings of persons who belong to the crew of seagoing vessels; to this 
amount shall be added two-fifths of the average cash value of the board provided 
for able-bodied seamen on seagoing vessels. 

Article 1068. 

Paragraph 1. The average monthly rate shall be determined by the imperial 
chancellor after a hearing of the highest administrative authority on a uniform basis 
for the whole German coast, and it shall be fixed according to the wage rates which 
able-bodied seamen on German vessels have received during the last three calendar 
years in which the German naval forces have not been mobilized. 

Par. 2. For those classes of the ship's crew who in addition to the wage or salary 
have a regular supplementary income, the average money value of such income shall 
also be included in fixing the average rate above referred to. 

Article 1069. 

The average rate shall be established separately for able-bodied seamen, steers- 
men, engineers, and other ship's officers, and for masters. It may also be graded 
further according to the type oi the vessels or according to classes of the ship's crew. 

Article 1070. 

In the case of persons of the ship's crew for whom no special average has been 
determined, three-fourths of the rate determined for able-bodied seamen shall be 
used. 

18544°— No. 96—12 21 



662 BULLETIN OF THE BUREAU OF LABOR. 

Article 1071. 

The deiermination of the average rates shall be reexamined at least every five 
years. 

Article 1072. 

After the expiration of the seventeenth year of life, the pension is to be increased 
to the average rate for ordinary seamen, and after the expiration of the nineteenth 
year of life to the rate for able-bodied seamen: Provided, That it had been computed 
according to a lower average rate. 

Article 1073. 

In so far as the annual earnings exceed 1,800 marks [$428.40] the excess shall be 
computed at only one-third. 

Article 1074. 

Paragraph 1. Articles 563 to 566 and 568 of the industrial accident insurance are 
applicable as concerns the annual earnings of the other persons insured according to 
article 1046 who belong to the accident association. 

Par. 2. In this connection, articles 1075 to 1078 and 1082 are also applicable. 

Article 1075. 

If the customary number of working days of operation in the year is so small that 
those employed in the establishment regularly perform work elsewhere for com- 
pensation in addition, then in the cases specified in articles 565 and 566 the number 
of working days necessary to make up the 300 shall be added to the amount com- 
puted according to article 565 or 566, using the local wages which at the time of the 
accident have been determined for the place of employment of the insured person 
(arts. 149 to 152). 

Article 1076. 

Articles 1074 and 1075 are correspondingly applicable if the annual earnings are 
composed of the amounts specified at not less than weekly rates. 

Article 1077. 

If the annual earnings as computed according to articles 1074 to 1076 do not equal 
300 times the local wage rate (art. 1075), then 300 times the local wage rate shall be 
considered as the annual earnings. 

Article 1078. 

The pension for injm-ed young persons, which shall be computed according to the 
local wage rate, shall be fixed at first according to the age class in which they were when 
the accident occurred, and is to be correspondingly increased for them as they go 
into the higher wage class. 

Article 1079, 

The constitution must contain provisions in regard to obtaining the annual earn- 
ings of undertakers and of pilots as well as other persons employed in the establishment, 
and strangers in the establishment who belong to the accident association (art. 1064, 
No. 1). In so far as the annual earnings exceed 1,800 marks [$428.40], the excess 
shall here also be computed at only one-third. 

Article 1080. 

In computing the pension of insured persons who belong to a branch institute (art. 
1120) the annual earnings shall be taken as equal to 300 times the local wage rate 
which was established at the time of the accident for the seat of the establishment. 
In the case of young persons the pensions shall be increased as specified in arti- 
cle 1078. 

Article 1081. 

If the accident occurs to a person already permanently partially disabled whose 
pension is based on the average monthly rate as above determined (art. 1068), then 
only that part shall be used as a basis which corresponds to the degree of earning 
power previous to the accident. 



workmen's INSUEANCE code of JULY 19, 1911 GERMANY. 663 

Article 1082. 

The local wage rate for persons already permanently partially disabled shall be 
considered as only that part thereof which corresponds to the degree of earning power 
previous to the accident. 

Article 1083. 

If the injured person is insured against sickness on the basis of the imperial insur- 
ance or in a miners' sick fund, then articles 573 to 576 and 578 of the industrial acci- 
dent insurance shall be correspondingly applied for relief during the first 13 weeks 
after the accident. In such cases contravention of article 93, paragraphs 2 and 3, 
and articles 95 to 97 of the Navigation Code are not to be considered as misdemeanors 
in the meaning of article 557, paragraph 1. 

Article 1084. 

If the persons insured under articles 1046 and 1049 are not insured on the basis of 
the imperial insurance or in a miners' sick fund and also have no legal claim against 
the shipowner for sick relief during the first 13 weeks after the accident, then the 
undertaker must grant relief during this time. This does not apply in the case of 
insured persons whose annual earnings exceed 2,500 marks [$595]. 

.Article 1085. 

Paragraph 1. The amount of relief to be provided by the undertaker shall be 
based on the following: 

1. In the case of seamen according to articles 553 and 553a of the Commercial 

Code and articles 59 to 61 of the Navigation Code. 

2. In other cases according to article 577, paragraph 1, and article 578 of the 

industrial accident insurance. 

Par. 2. Article 576 is correspondingly applicable as regards a claim for reimburse- 
ment of the undertaker against the accident association. 

Par. 3. The employer or carrier of the other relief under article 577, paragraphs 
2 and 3, shall take the place of the undertaker. 

Article 1086. 

Paragraph 1. The accident association can assume either wholly or partly the ben- 
efits to be paid by the undertaker. 

Par. 2. In the case of seamen the undertaker must reimburse the expenses of the 
accident association. In such case reimbursement for the cost of medical treatment 
(art. 553 of the Commercial Code and art. 59 of the Navigation Code) shall be one- 
half of the amount which would have to be expended for institutional care at the 
seat of the competent section. 

Par. 3. In the case of persons other than seamen article 579, paragraph 1, sentences 
2 and 3, shall be applicable to the reimbursement. 

Par. 4. This provision shall be correspondingly applicable if in the cases mentioned 
in article 1085, paragraph 3, in connection with article 577, paragraphs 2 and 3, the 
employer or carrier of the other relief takes the place of the undertaker. 

Article 1087. 

Paragraph 1. In the case of injured persons who belong to a branch institute 
relief for the first 13 weeks after the accident shall not be based according to articles 
1083 to 1086. 

Par. 2. In the case of such injured persons the commune in whose district the 
establishment has its seat must grant sick benefits according to article 182. In the 
place of sick benefits it may grant hospital care and house money according to articles 
184 and 186; with the consent of the injured person it may also grant care according 
to article 185, paragraph 1, and deduct up to one-fourth of the pecuniary sick benefits 
therefor. The local wage rate of the seat of the establishment shall be used as basic 
wage. 

Article 1088. 

Paragraph 1. The commune is not required to provide sick benefits according to 
article 1087 in the following cases: 

1. In so far as the injured person has a claim for similar relief on the basis of the 

sickness insurance or other legal provisions. 

2. If he is exempt from insurance on the basis of benefits which are of equal value 

with the sickness insurance. 

3. As long as he remains in a foreign country. 



664 BULLETIN OF THE BUREAU OF LABOR. 

Par. 2. If those first obliged to do so do not provide the injured person with the 
sick benefits, then the commune shall assume such provision. The expenditures 
for this purpose must be repaid to the commune by those obliged to make such pro- 
vision. 

Par. 3. In such cases the compensation for the sick care as well as in the case of 
treatment in a hospital shall be equal to three-eighths of the basic wage according to 
which the pecuniary sick benefits of the beneficiary are computed, and in the case 
of maintenance in a hospital one-half of the basic rate. If no other basic wage is 
specified, then the local wage rate of the seat of the establishment shall be used. 

Article 1089, 

Paragraph 1. Upon demand of the commune the general local sick fund, or, in 
the absence of such, the rural sick fund of the place of residence or abode, shall 
take upon itself the providing of the sick benefit. 

Par. 2. Expenditures on this account shall be reimbursed by the commune. In 
Buch cases if a higher expenditure is not shown, article 1088, paragraph 3, shall be 
applicable. 

Article 1090. 

Paragraph 1. The branch institute may take upon itself the provision of medical 
treatment (art. 1087). 

Par. 2. The commune, or under the reservation of articles 1513 and 1516 those other- 
wise obliged to do so (art. 1088, par. 1. Nos. 1 and 2), shall reimburse the branch 
institute in so far as the injured person had a claim upon them for benefits. In such 
cases article 1088, paragraph 3, is applicable. 

Article 1091. 

Paragraph 1. The relief of the injured person may be transferred by the branch 
institute to the commune, which is obliged to provide sick benefits for the first 13 
weeks, or to the sick fund (art. 1089) until the end of the course of treatment. 

Par. 2. The branch institute must reimburse the commune or the sick fund for the 
expenditure on this account. In such cases article 1088, paragraph 3, shall be appli- 
cable unless a higher expenditure is shown. 

Article 1092. 

Paragraph 1. If, in the case of persons who are not insured against sickness on 
the basis of the imperial insurance or with a miners' sick fund, and also do not have 
a claim for sick relief according to article 1087, it is to be feared that an accident 
compensation will have to be provided for, the accident association may inaugurate 
a course of treatment even before the expiration of the first 13 weeks after the accident 
in order to remove the consequences of the accident or to alleviate the same. 

Par. 2. The association may place the insured person in a medical institution. 
In such cases article 597, paragraphs 2 to 4, is applicable. 

Par. 3. The association, with his consent, may grant the injured person care accord- 
ing to article 185, paragraph 1. 

Par. 4. The injured person may demand from the accident association a proper 
reimbursement for the earnings which he has lost on account of the course of treat- 
ment. 

Article 1093. 

Even without granting the injured person a course of treatment, the accident asso- 
ciation may investigate the consequences of the accident within the first 13 weeks. 
Article 581, paragraph 1, is here correspondingly applicable. 

Article 1094. 

Articles 582 and 583, paragraph 1, and article 584 are applicable in regard to — 
The granting of the accident pension before the expiration of the 13 weeks. 
The transfer of the claim for pecuniary sick benefit before the expiration of the 

13 weeks. 
The liability of the accident association for the attitude of the carrier of the sick- 
ness insurance before the expiration of the 13 weeks. 
In such cases article 583, paragraph 1, is also applicable for the payments of the 
commune (art. 1087). 



WOEKMEN^S INSUEANCE CODE OF JULY 19, 1911 GEEMANY. 665 

Article 1095. 

In fatal cases, the following must in addition be granted: 

1. A funeral benefit according to articles 1096 and 1097. 

2. A pension to the survivors beginning with the date of death. 

Article 1096. 

Paragraph 1. The funeral benefit shall be granted in the following cases: 

1. If the shipowner does not have to bear the cost of burial according to article 

554 of the Commercial Code or article 64 of the Navigation Code {Seemanns- 
ordnung) ; 

2. If the deceased was buried on land. 

Par. 2. Article 203 is here correspondingly applicable. 

Article 1097. 

Paragraph 1. The funeral benefit shall consist of the following amount: 

1. "When paid by the accident association, 

a. For seamen, two-thirds of the monthly average rate (arts. 1067 to 1073); 

b. For other persons, the fifteenth part of the annual earnings. This amount 

shall be computed in the same manner as in the case of bodily injury; 
however, in such cases, article 1082 does not apply; 

2. When paid by the branch institute, 20 times the local wage rate according to 

article 1080. 
Par. 2. In all cases, however, the funeral benefit shall be at least 50 marks [$11.90]. 

Article 1098. 

Paragraph 1. The pension to the survivors shall consist of a fraction of the annual 
earnings (arts. 1067 to 1073, 1097 par. 1, No. lb and art. 1080). 

Par 2. In other cases, articles 588 to 596 of the industrial accident insurance are 
applicable in this respect; in such cases remaining on board a German ship, shall 
be considered the same as an abode in Germany. 

Article 1099. 

Paragraph 1. If the insured person has gone to sea on a vessel, then his survivors 
also have a claim to the pension if the vessel has sunk or according to articles 682 and 
683 of the Commercial Code is regarded as missing, and during one full year after its 
sinking or after the last news of the vessel, no trustworthy information concerning the 
existence of the person missing has been received. 

Par. 2. The local insurance office may demand a solemn assurance from the surviv- 
ors that they have received no other information regarding the existence of the 
missing person than that declared. 

Article 1100. 

Paragraph 1. In such cases, the pension shall begin on the day of the sinking of the 
vessel, or if it is missing, one-half a month after the date up to which the latest news 
of the vessel reaches (art. 53 of the Navigation Code). 

Par. 2. The claim to further receipt of the pension shall cease if it is proved that 
the person believed to be dead is still alive. 

Article 1101. 

Paragraph 1. If on account of a previous accident, the annual earnings (art. 1097, 
par. 1, No. lb and art. 1080) are smaller than the wages received before the earlier 
accident, then the previous pension is to be added to the annual earnings j in such 
cases, however, that amount may not be exceeded which, as annual earnings, was 
used as the basis for the previous pension. 

Par. 2. This shall not apply if the pension was computed according to the monthly 
average as determined above (art. 1068). 

Article 1102. 

Paragraph 1. The accident association may grant treatment in a medical institu- 
tion in place of sick treatment and pension (art. 1065 in connection with art. 558). 
In such cases, article 597, paragraphs 2 to 5, and article 598 are applicable. 



666 BULLETIN OF THE BUKEAU OF LABOK. 

Par. 2. With the consent of the injured person, the accident association may 
grant free medical treatment and maintenance on board a vessel instead of treat- 
ment in a medical institution. 

Article 1103. 
Article 599 is applicable in regard to home care. 

Article 1104. 

Paragraph 1. If the accident association, according to article 1086, assumes the 
benefits of the undertaker, then in place of the relief designated in articles 1084 and 
1085, it may grant care and maintenance in a hospital as well as grant house money 
according to articles 186 and 577, paragraph 1, in the cases mentioned in article 1085, 
paragraph 1, No. 2. In this connection, article 1102, paragraph 2, shall be corre- 
spondingly applicable. 

Par. 2. In the case of seamen, the undertaker must reimburse that amount for 
treatment and care which would have to be expended for treatment in a medical 
institution at the seat of the competent section. 

Par. 3. For persons other than seamen, the reimbursement mentioned in article 
579, paragraph 1, sentences 2 and 3, is to be used. 

Par. 4. This provision is to be correspondingly applicable when in the cases men- 
tioned in articles 1085, paragraph 3, in connection with article 577, paragraphs 2 and 
3, the employer or carrier of the other relief takes the place of the undertaker. 

Par. 5. With the consent of the insured person, the accident association may grant 
care according to article 185, paragraph 1, and deduct up to one-fourth of the pecuniary 
sick benefit therefor. 

Article 1105. 

Article 602 is applicable for special relief, when the injured person is placed in a 
medical institution. 

Article 1106. 

Paragraph 1. The accident association may transfer the fulfillment of its duties 
toward the injured person and his relatives, to the undertaker who had or still has 
the duty of providing relief for the first weeks after the accident, and these duties may 
be transferred to the end of the medical treatment to any extent which the association 
deems advisable. This does not apply if the establishment is insured in the branch 
institute. 

Par. 2. The association must reimburse the undertaker for expenses arising here- 
from. As reimbursement, there must be granted, computed on the basis of the year 
for the benefits which correspond to the sick care (art. 558, No. 1), three-eighths of 
the annual earnings (arts. 1067 to 1073, 1097, par 1, No. lb) and in addition in the case 
of care in a medical institution or treatment or maintenance on bjard a vessel, there 
must be granted one-half of the annual earnings for maintenance, if a higher expendi- 
ture is not shown to have been made. 

Article 1107. 

Paragraph 1. If controversies arise in a foreign country in regard to free medical 
treatment and maintenance in a hospital or on board a vessel, then that consular ofiice 
(Seemannsamt) which shall be first appealed to, shall render the provisional ruling. 
Each party must follow the order of the consular office (Seemannsamt) until the decision 
of the competent office is rendered. 

Par. 2. Exemption from fees and stamp taxes (arts. 137 and 138) is here also appli- 
cable. 

Article 1108. 

Paragraph 1. The marine office (Seemannsamt) shall decide in controversies 
concerning claims of seamen based on articles 1083 to 1086, 1092, and 1104 as well as 
from article 1106 : Provided, That this controversy must not be settled by the determina- 
tion procedure of the accident insurance. The marine office (Seemannsamt) shall 
also decide controversies concerning claims of seamen to pecuniary sick benefits 
which, according to article 1094, have been transferred to the accident association. 

Par. 2. If the matter concerns the granting of relief, the marine office which is 
first appealed to shall be competent, if the matter concerns reimbursement, the 
marine office of the home port. 

Par. 3. Exemption from fees and stamp taxes is here also applicable. 



WOKKMEN's insurance code of JULY 19, 1911 GERMANY. 667 

Article 1109. 

Paragraph 1. The decision of the marine office (Seemannsamt) shall have the 
same status as the judgment of the local insurance office; the appeal does not effect 
a stay if the matter concerns the granting of relief. 

Par. 2. In the second instance that superior insurance office is competent in whose 
district the vessel has its home port or if there is no German home port^ then the 
district in which the establishment has its seat. 

Par. 3. In regard to the point as to whether a review is permissible, the claims 
designated in article 1108, paragraph 1, shall be considered as claims for benefits of 
sickness insurance. 

Article 1110. 

Paragraph 1. In controversies between the undertaker and the accident associa- 
tion in regard to transferring their benefits (art. 1106), the local insurance office shall 
decide finally if the matter does not concern a claim for reimbursement. 

Par. 2. Controversies in regard to claims for reimbursement arising out of articles 
1083 to 1086, 1104, and 1106 shall be decided in judgment procedure. 

Article 1111. 

Paragraph 1, In controversies between a commune and a sick fund in regard to 
assuming sickness benefits (art. 1089) as well as in controversies between the branch 
institute and the commune or sick fund in regard to the transfer of the relief (art. 
1091) the local insurance office shall decide finally if the matter does not concern a 
claim for reimbursement. 

Par. 2. Controversies in regard to reimbursement arising out of articles 1088 to 
1091 shall be decided in judgment procedure. 

Article 1112. 

Articles 603 and 604 of the industrial accident insurance and article 1106 shall be 
applicable in regard to a new course of treatment. 

Article 1113. 

Article 605 is applicable concerning changing the medical institution. However, 
in the case of seamen in foreign hospitals, the consular office (Seemannsamt) in whose 
district this hospital is located, replaces the consent of the seamen. 

Article 1114. 

The provisions of the industrial accident insurance are applicable concerning the 
following: 

Harm to the injured person because of improper conduct in violation of the rules 

.relating to the medical treatment (art. 606); 
Placing the pensioner in a home for invalids or similar institution (art. 607). 

Article 1115. 

In addition the provisions of the industrial accident insurance are applicable in 
regard to the following: 

A new determination of the pension on account of a change in conditions (arts. 

608 to 611); 
The maturity of the pension and duration of the receipt of the pension (arts. 612 

and 613); 
The right to receive the benefits after the death of the person entitled thereto 

(art. 614); 
The suspension of the pension in the case of penalty involving the loss of liberty 

or confinement in a workhouse or reformatory (art. 615, par. 1, No. 1, and par. 4). 

Article 1116. 

Paragraph 1. The right to receive the pension shall be suspended as long as the 
beneficiary — 
• 1. Does service on a foreign war vessel ; 

2. Without having been mustered in on a German vessel, voluntarily and regu- 
larly abides in a foreign country and neglects to do the following: 
Notify the accident association of his abode; 



668 BULLETIN OF THE BUREAU OF LABOR. 

As an injured person presents himself at a marine office from time to time 
upon demand of the accident association. 

The Imperial Insurance Office shall specify the details in regard tcr notify- 
ing the association and presenting himself. 

If the beneficiary proves that without any fault of his own he has failed 
to make the prescribed report and presentation, then to that extent his right 
to a pension shall be revived. 
3. As a foreigner, has been expelled from the Empire, because of condemna- 
tion in a penal procedure. The same applies in the case of a foreigner entitled 
to benefits who because of condemnation in a penal procedure has been 
expelled from the territory of a federal State so long as he does not stay in 
another federal State. 

The Federal Council can suspend the cessation of pensions for foreign 

border territories, or for subjects of such foreign States whose legislation 

grants corresponding relief for Germans and their survivors. 

Par. 2. If the expulsion of a foreigner entitled to benefits (par. 1, No. 3) has not 

been ordered on the basis of condemnation or because of condemnation in a penal 

procedure, then in his case paragraph 1, No. 2, shall apply. 

Par. 3. In the meaning of these provisions German protectorates shall be considered 
as part of the Empire. 

•Article 1117. 

The provisions of the industrial accident insurance are also applicable concerning 
the following: 

Settlements in the form of capital sums (arts. 616 to 618); 

Relinquishment of a claim for reimbursement and of legal rights (arts. 619 and 620); 
Transferring, assigning, execution of the claims, and deductions from the claims 
(arts. 621 and 622). 

Section Three. — Carriers op the Insurance. 

Article 1118. 

The accident association as a carrier of the insurance includes the undertakers of 
insured establishments which are not insured in the branch institute (art. 1120). 

Article 1119. 

Paragraph 1. The Empire or a federal State is the carrier of the insurance if the 
establishment is conducted for its account. This shall not apply whenever the 
Empire or the federal State, through a declaration of the imperial chancellor or highest 
administrative authority, enters the accident association. The declaration of entrance 
shall also specify the date on which such entrance shall become effective. 

Par. 2. Article 627, paragraph 2, shall be applicable as regards withdrawal from 
the accident association and reentrance into the same; article 625, paragraphs^ to 5, 
of the industrial accident insurance shall also be applicable as regards withdrawal. 

Article 1120. 

The three kinds of establishments designated below shall be insured in a special 
branch institute which shall be attached to the accident association. The accident 
association shall be the carrier of the branch institute. The three groups of establish- 
ments are the following: 

1. Establishments engaged in navigation on the high seas with vessels of the kind 

designated in article 1058, paragraph 1, No. 1 (small-scale establishments 
engaged in navigation) ; 

2. Establishments engaged in fishing on the high seas with vessels which the 

Imperial Council has not already placed under the accident insurance as 
being either steamers engaged in deep-sea fishing or herring luggers (art. 
1058, par. 1, No. 2); ^ 

3. Establishments engaged in fishing with vessels of the kind described in article 

1049. 

Article 1121. 

The undertaker shall be considered as that person for whose account the establish- 
ment is conducted ; in the case of navigation establishments this shall be the shipowner. 



workmen's insurance code of JULY 19, 1911 GERMANY, 669 

Article 1122. 

Paragraph 1. The following provisions of the industrial accident insurance shall 
be applicable: 

Article 630, paragraph 3, concerning the maintenance of the status of the accident 

association; 
Article 634 concerning the compensation of accidents in establishments of other 

parties ; 
Article 647, paragraphs 1 and 3, concerning the dissolution of the accident asso- 
ciation. 
Par. 2. The official bodies of the dissolved accident association shall wind up the 
affairs under supervision of the Imperial Insurance Office. 

Section Four. — Organization. 

i. membership and right to vote — representatives. 

Article 1123. 

Every undertaker of an establishment insured in it shall be a member of the 
accident association. 

Article 1124. 

Membership begins with the opening of the establishment and with the beginning 
of the insurance obligation; for the Empire and the federal States the beginning of 
the membership shall be regulated according to article 1119. 

Article 1125. 

On each vessel and in every other establishment the undertaker must make known 
through a placard the following : 

To what section the vessel or the establishment belongs; 

The location of the business office of the directorate of the accident association 
and of the directorate of the section. 

Article 1126. 

If members or their local representatives do not possess their civic rights, they shall 
have no right to vote. 

Article 1127, 

The constitution must specify the number of votes of shipowners according to the 
fiumber of persons estimated according to article 1148. 

Article 1128.. 

Paragraph 1. If the shipowner does not have his place of residence in the home 
port of the vessel, then he must appoint a representative of the vessel in the home port. 

Par. 2. The name of the representative and changes in the person of the same are 
to be communicated to the accident association. The shipowner's right to vote and 
right to be elected shall be suspended until this has been done. So long as this is the 
case, he shall not be invited to the general meetings of the associations, and in matters 
of the association's affairs the administrative bodies or the authorities thereof shall be 
considered as having delivered to him any document by posting it publicly for one 
week in their business rooms. If his name is not known, they may replace his name in 
the placard by the name of the vessel. The constitution may further restrict the 
shipowner in the execution of his rights of membership. 

Article 1129. 

Paragraph 1. The representative shall in legal and other matters represent the 
shipowner in his capacity as member of the association before the association. A 
limitation in the scope of the power of the representative as against the accident asso- 
ciation shall be without effect. 

Par. 2. Communications to the representative concerning matters of the accident 
association shall have immediate effect for and against the shipowner. 



670 BULLETIN OF THE BUREAU OF LABOR. 

Article 1130. 

Paragraph 1. Joint owners of ships must designate a joint representative even if 
all of them have their place of residence in the home port. Article 1128 is here 
applicable. 

Par. 2. The manager of the shipowning firm appointed by the joint owners of the 
ship shall be considered as the representative before the accident association so long 
as no such representative has been appointed. 

Article 1131. 

Articles 1128 to 1130 shall not apply to the branch institute. 

ii. registration of establishments. 

Article 1132. 

The authorities in charge of the shipping registry and ship's measurements must 
without delay send notice of the measurements and registry of new vessels to the direc- 
torate of the accident association, and the undertakers must send notice concerning 
the opening of other establishments to the local insurance oflBce of the seat of the 
establishment. 

III. register op establishments. 

Article 1133. 

Paragraph 1. The directorate of the accident association must keep a register of 
the establishments on the basis of the — 

Register of ships in the German merchant marine as given in the latest edition of 

the handbook of the German merchant marine; 
List of the undertakers which is sent to it by the Imperial Insurance Office 
under the provisions of article 22 of the law of July 13, 1887 (Reichs- 
Gesetzblatt, p. 329); 
Notices concerning the opening of new establishments, (art. 1132). 
Par. 2. No register of establishments shall be kept for the branch institute. 

Article 1134. 

Articles 658, 659, 660, sentences 1 and 2, articles 661 and 663 of the industrial acci- 
dent insurance are applicable as regards registry of establishments. 

IV. changes in the conditions op the establishment. 

Article 1135. • 

The authorities in charge of the ship's registry shall indicate to the directorate of the 
accident association all changes and cancellations in the ship's register. 

Article 1136. 

For the vessels insured under article 1046, which are not entered in the ship 's regis- 
try, the ship owners and managers of shipping firms and the representatives must 
report to the directorate of the accident association within the time specified by the 
constitution the following matters : 

Loss of the vessel (art. 1174); 

Changes in the home port, name, class, and capacity of the ship; 

Changes in the person and in the citizenship of the shipowners or joint owners. 

Article 1137. 

Paragraph 1. If these reports to the directorate are not made, or the reports to the 
authorities in charge of the register are not made (art. 14 of the flag law, Reichs-Gesetz- 
blatt, 1899, p. 319) then the owner or joint owner whose name is registered in the 
register of the establishments is liable for the contributions which are to be assessed 
upon the members. This liability shall further include the fiscal year in which the 
report is made. 



workmen's insurance code of JULY 19, 1911 GERMANY. 671 

Par. 2. The new owner is not released from liability on that account. 

Article 1138. 

The undertakers of floating docks and of pilotage establishments and other estab- 
lishments designated in article 1046, number 3, must report to the directorate of the 
accident association every change in the person for whose account the establishment 
is conducted and all changes in the establishment which are of importance for its 
membership in the accident association. The report is to be made within the time 
limit which according to the constitution is specified for reports under article 1136. 
If the report is not made, then the undertaker shall suffer the same loss of rights as the 
shipowners in article 1137. 

Article 1139. 

If on the basis of the information from the reports received, or if on their own initia- 
tive the directorate of the accident association believes it necessary that the establish- 
ment shall be transferred to another accident association or because it is shut down 
shall be cancelled from the list, then articles 661 to 673 of the industrial accident insur- 
ance are correspondingly applicable both for the transfer and for cancellation as well 
as for transfer of the cost of the accidents and of a share of the reserve. 

Article 1140, 

Paragraph 1. The obligation of giving notice in case of changes in the establish- 
ment which for the estimates are of importance (art. 1148) and the further procedure, 
shall be regulated by the constitution. 

Par. 2. The undertaker has the right of appeal against the decision which the 
accident association has issued on the basis of reports of changes or of its own initiative. 

Article 1141. 

If the accident association has a risk tariff, then the requirement to give notice shall 
apply in cases of changes in the establishment which affect the classification of estab- 
lishments in the risk classes, while article 674 shall apply for the further procedure. 

V. constitution. 

Article 1142. 

The accident association shall regulate its internal administration and order of busi- 
ness by a constitution, which the general meeting of the accident association shall 
decide upon. 

Article 1143. 

The constitution must specify — 

1. The name and the seat of the accident association; 

2. The composition, rights, and duties of the directorate; 

3. The form of the declarations of the decisions of the directorate as well as its 

signature on behalf of the accident association, the manner of making deci- 
sions in the directorate, and its representation as to third parties; 

4. The calling of the general meeting of the accident association and its method 

of arriving at a decision; 

5. The right to vote of the members and the examination of their credentials; 

6. The representation of the accident association as against the directorate; 

7. The rates for loss of earnings and for traveling expenses which are to be granted 

to the representatives of the insured persons (art. 21); 

8. Procedure of the administrative bodies of the accident association in classify- 

ing the vessels; 

9. Procedure in cases of changes in the establishment and of a change in the 

person of the head of the establishment; 

10. The consequences of shutting down an establishment or of a change in the 

person of the undertaker, especially as to the guaranteeing of his contribu- 
tions if he shuts down the establishment; 

11. The drawing up, examining, and acceptance of the annual balance sheet; 

12. The administrative action relative to the issuance of the regulations contain- 

ing provisions for accident prevention and for the supervision of the estab- 
lishments; 



672 BULLETIN OF THE BUREAU OF LABOR. 

13. Procedure in case of the reporting and release from membership of undertakers, 

of pilots, and of other persons insured according to article 1064, number 1, 
who belong to the accident association, as well as concerning the amount 
and ascertainment of the annual earnings of undertakers and of pilots; 

14. The method of publishing notices; 

15. The provisions as to the amendment of the constitution. 

Article 1144. 

The following provisions of the industrial accident insurance shall apply for the: 
Composition of the general meeting of the accident association of representatives, 

division of the accident association into sections and appointment of district 

agents (arts. 678 and 679); 
Authority of the directorate of the accident association to impose penalties (art. 

680); 
Drawing up of the constitution (arts. 681 to 683). 

Article 1145. 

The directorate of the accident association must make an announcement in the 
Reichsanzeiger, if the constitution, with the approval of the Imperial Insurance 
Office, has been changed in regard to — 

1. The name or seat of the accident association; 

2. The districts of the sections. 

vi. administrative bodies of the accident association. 

Article 1146. 

Paragraph 1; The provisions of the industrial accident insiu-ance (arts. 685 to 689) 
shall be applicable as regards the administrative bodies of the accident association. 

Par. 2. Managers of shipowning firms are also eligible to the administrative bodies 
of the accident associations. 

vn. employees of the association. 

Article 1147. 

The provisions of the industrial accident insurance (arts. 690 to 705) shall be appli- 
cable as regards employees of the accident association and as regards the transferring 
of business to salaried business managers. 

vin. making the estimates — risk tariff and special costs. 

Article 1148. 

Paragraph 1. For each seagoing vessel, there shall be estimated the average num- 
ber of seamen who are necessary to form the crew. 

Par. 2. An estimate shall be made according to classes (arts. 1067 to 1071) on the 
basis of the following: 

The handbook of the German merchant marine; 

The registers of undertakers which according to the provisions of articles 21 and 
22 of the law of July 13, 1887 (Reichs-Gesetzblatt, p. 329) have been drawn up 
on the creation of the accident association; 
Changes in the conditions of the establishment. 
Par. 3. The above shall not apply in the case of the branch institute. 

Article 1149. 

The constitution shall specify that risk classes shall be formed. In such cases 
articles 706 to 709 of the industrial accident insurance shall be applicable. The 
constitution must in such cases also contain provisions in regard to the procedure in 
the apportionment to the risk classes. 

Article 1150. 

The directorate of the accident association shall make estimates concerning the 
vessels and shall apportion the establishments to the risk classes as specified in the 
constitution. 



workmen's insurance code of JULY 19, 1911 GERMANY. 673 

Article 1151. 

The members must upon demand within two weeks furnish such information to the 
administrative bodies of the accident association as is necessary to make estimates 
and apportionment. This shall also apply to the managers of shipowning firms, to the 
firms' representatives, and to the masters of the vessel. 

Article 1152, 

In the periods within which the risk tariff is to be reexamined, the estimates and 
apportionment are to be regularly verified. 

Article 1153. 

Paragraph 1. Each member must be notified of his apportionment to the risk 
classes and each shipowner must be informed of the estimates of his navigation estab- 
lishments. 

Par. 2. Even before the regular reexamination, the accident association may make 
a new estimate of the ship's crew and make a new apportionment of the establishment 
if it develops that the statements of the undertaker were incorrect or if a change has 
taken place in the establishment. 

Par. 3. The undertaker shall have an appeal against the estimate and apportion- 
ment. 

Article 1154. 

Paragraph 1. On the basis of accidents which have taken place on their vessels, 
the general meeting of the accident association, upon application of the directorate, 
may either impose supplementary assessments on the undertakers or grant them a 
rebate for the coming tariff period or for a part of the same. 

Par, 2. The undertaker shall have the right to appeal against the determination 
of supplementary assessments. 

Article 1155. 

Paragraph 1. The constitution may provide that higher contributions shall be 
paid for voyages with especially dangerous cargoes or in especially dangerous waters 
or seasons. 

Par. 2. The general meeting of the accident association shall specify the basis 
for such action and make regulations concerning the reporting and determination of 
the decisive facts. 

Par. 3. The general meeting may also transfer this matter to a committee or to the 
directorate. 

Par. 4. Such provisions shall require the approval of the Imperial Insurance 
Office. For the reexamination, articles 708 and 709 of the industrial accident. insur- 
ance shall be correspondingly applicable. 

Article 1156. 

Paragraph 1. For the single voyages (art. 1155) the administrative bodies of the 
accident association may increase the contributions in proportion to such voyages as 
have been made in each fiscal year. The details on this point shall be specified in 
the constitution. 

Par. 2. Article 1151 shall apply as regards the obligation to supply information. 

Par. 3, The imposition of such contributions may be contested in the same way 
as in the case of a protest against the determination of the contributions (arts. 1178 
to 1182). 

ix. administration op the assets. 

Article 1157. 

The provisions of the industrial accident insurance shall be applicable as regards 
the administration of the assets (arts. 717 to 721). 

Section Five. — Supervision. 

Article 1158. 

The Imperial Insurance Oifice shall conduct the supervision of the accident asso- 
ciation. 



674 BULLETIN OF THE BUKEAU OF LABOR. 

Section Six. — Payment of the Compensation — Raising op the Funds. 

I. payments through the post office department. 

Article 1159. 

Paragraph 1. The compensation shall be paid by the accident association upon 
the authorization of its directorate through German post offices and as a rule through 
those post offices in whose districts is the home port of the ship upon which the 
accident has occurred. 

Par. 2. The directorate shall notify the payee as to the office of payment. 

Par. 3. He may apply to the directorate or at the office of payment so designated to 
have the payments made at the post office of his place of residence. 

Article 1160. 

The following articles of the industrial accident insurance are to be applied in 
the following cases: 

Article 727 in regard to the necessary certificates for payments; 
Article 728 as regards the collection of advance payments through the Post Office 
Department. 

Article 1161. 

The Imperial Insurance Office may specify the manner in which the payees are to 
be paid who customarily abide in a foreign country. 

II. raising of the funds. 

Article 1162. 

The means for the covering of its expenditures and for the costs of the administration 
of the branch institute (art. 1192) shall be raised by the accident association by means 
of members' contributions, which shall be sufficient for the needs of the preceding 
fiscal year. 

Article 1163. 

Paragraph 1. At the branch institute the unions of communes and the under- 
takers belonging to the institute must pay fixed contributions, specified in advance 
(arts. 1195 to 1197). 

Par. 2. These contributions must cover the capitalized value of pensions which 
the institute will probably have to carry and in addition cover the other expenditures 
which the branch institute has made. 

Article 1164. 

Paragraph 1. The provisions of the industrial accident insurance shall be appli- 
cable in the following cases: 

In regard to the purposes for which the contributions may be raised and the 

means may be expended (arts. 736); 
In regard to advances upon contributions as well as contributions paid in advance 

(arts. 738 and 739); 
In regard to the accumulation of a reserve (arts. 741 to 747). 
Par. 2. These provisions, with the exception of article 736, shall not apply to the 
branch institute. 

III. PROCEDURE in ASSESSMENTS AND COLLECTIONS. 

Article 1165. 

Paragraph 1. The directorate of the accident association shall determine which 
part of the payments shown to have been made by the highest postal authorities 
shall be charged to the accident association and which part to the branch institute. 

Par. 2. Articles 1166 to 1184 shall be applicable as regards the assessment and 
collection of the contributions of members. 



workmen's insurance code of JULY 19, 1911 GERMANY. 675 

Article 1166. 

Paragraph 1. Within six weeks after the expiration of the fiscal year each member 
of the accident association shall transmit a wage list to the directorate of the accident 
association. 

Par. 2. This list must contain the following: 

1. For each sea-going vessel the insured persons employed during the preceding 
fiscal year on the vessel, but not belonging to the crew (art. 1046, No. 2); 

2. For establishments operating floating docks, pilotage establishments, and 

other establishments designated in article 1046, No. 3, the insured persons 
employed in the establishment during the preceding fiscal year; 
in addition, for all these persons the wage list must show the following: 
The compensation earned by these persons; 

If the compensation actually received by these persons is not decisive, then a 
computation of the earnings which is to be used in the assessment and contri- 
butions. 
Bar. 3. The constitution may permit a summary wage list in accordance with 
article 750, paragraph 3. 

Article 1167. 

The provisions of the industrial accident insurance (art. 751) shall be applicable 
in regard to the following: 

Earlier transmittal of the wage list ; 

The keeping and preserving of the wage list. 

Article 1168. 

The accident association itself may draw up or complete the wage list in the case 
of members who do not transmit the same promptly or completely. 

Article 1169. 

The contributions of the members shall be assessed according to their apportionment 
to the risk classes, and in the second place according to the following: 

1. In case of seagoing vessels according to the amounts obtained from [1] the 

sum of the average wage payments (arts. 1067 to 1070) for the estimated 
number of men in the crew and [2] from the wage list ; supplementary charges, 
rebates, or increases of contributions (arts. 1154 and 1155) are to be considered 
in this connection. 

2. In the case of other establishments according to the wage list. 

Article 1170. 

If during the period of contribution the annual amount of the wage payments 
exceeds 1,800 marks [$428.40], then of the excess only one-third shall be included in 
the computation. If it exceeds 5,000 marks [$1,190], then the excess shall be included 
in the computation only so far as the constitution has extended the insurance to a 
higher amount of the annual earnings. 

Article 1171. 

Paragraph 1. In the case of vessels which are proved to have been out of commis- 
sion without interruption for a period longer than 14 days, the contribution is to be 
proportionately reduced for that period of inactivity which exceeds 14 days. 

Par. 2. It shall be reduced for that fiscal year in which the vessel was out of com- 
mission. If the period of inactivity extends over into the following fiscal year, then 
the reduction as far as necessary shall be postponed until then. 

Article 1172. • 

Paragraph 1. The contributions shall be reduced only if the shipowner, manager 
of the shipowning firm, or representative shall within six weeks after the expiration 
of the fiscal year prove to the directorate of the accident association an interrupted 
period of inactivity, in the form of a certificate which has been duly attested. 

Par, 2, If the vessel returns to the home port only after the expiration of the fiscal 
year, then proof can be brought even within six weeks following the return; the con- 
tribution, however, must for the time being be paid in full. 



676 BULLETIN OF THE BUKEAU OF LABOR. 

Article 1173. 

Paragraph 1. In the case of vessels which in the course of the fiscal year have 
been lost or are missing (arts. 862 and 863 of the Commercial Code), the directorate of 
the accident association on its own initiative shall reduce the contributions as soon 
as the facts which are decisive on the question have been made known to it. 

Par. 2. The reduction shall begin with the date of the loss, or one-half a month 
after the date up to which the latest news in regard to the vessel reaches. 

Par. 3. If in the case of the loss of the vessel German seamen are transported home- 
ward free of charge upon a German seagoing vessel or are brought back on the vessel 
(art. 1054, No. 2), then the contribution shall not be reduced for this period. 

Par. 4. If the contribution had already been paid, then it shall be returned in 
the proper proportion. 

Article 1174. 

A vessel shall be considered as lost also in the cases when it has sunk, has been con- 
demned as of insufficient value for repair, and on that account has been publicly 'sold 
without delay, also when it has been robbed, captured, or detained and declared a 
valid prize. 

Article 1175. 

The directorate of the accident association shall compute the contribution to be 
apportioned to each member for the covering of the total expenditure. 

Article 1176. 

The provisions of the industrial accident insurance (art. 754) are applicable as regards 
extracts from the assessment roll, its communication, and the request for payment; if 
a manager of the shipowning firm, or representative, has been appointed, then these 
are to receive notices. 

Article 1177. 

Articles 755 and 756 are correspondingly applicable as regards a new determination 
of the contribution after the extract has been transmitted. The new determination 
is also permissible when at a later time, because of incorrect statements of the under- 
taker, the ship's crew has again been estimated (art. 1153) or facts become known on 
account of which certain voyages are to be specially assessed (art. 1155). 

Article 1178. 

Paragraph 1. A protest against the determination of the contributions may be 
made by a representative or manager of the shipping establishment, and if such has not 
been appointed, by a member. Articles 757, 758, paragraph 1, and article 759 of the 
industrial accident association are correspondingly applicable. 

Par. 2. The apportionment and the making of the estimate (arts. 1150 and 1152) 
may not be contested in this manner. 

Article 1179. 

Paragraph 1. Appeals against the decision of the directorate may only be based 
upon the following: 

Mistakes in the computation; 

Incorrect rating of the estimate of the crew necessary for the vessel; 
Incorrect rating in any other class of the risk tariff than that to which the estab- 
lishment belongs; 
Insufficient consideration of the rebates (art. 1154); 

Incorrect determination of the duration of employment and of the annual earningB 
of the insured persons who are employed in establishments other than those 
engaged in navigation; 
Insufficient deductions on account of the inactivity of the vessel. 
Par. 2. An appeal on account of the two last-mentioned reasons is not permissible 
if the directorate has itself drawn up or completed the wage list or has not reduced the 
contributions because of the negligence of the persons required to do so. 



workmen's INSUEANCE code of JULY 19, 1911 GERMANY. 677 

Article 1180. 

Paragraph 1. If individual voyages have been specially assessed (art. 1155), then 
an appeal may be based on the claim that the actual prerequisites for a higher contribu- 
tion do not exist. 

Par. 2. This shall not apply if the person required to do so has neglected to file 
the required reports. 

Article 1181. 

If, upon protest or appeal, the contribution has been reduced, then article 760 shall 
be applicable as regards the covering of the deficit and the balancing of the excesa 
payment. The same article shall also apply if the loss of the vessel has only been 
determined at a later time. 

Article 1182. 

If it later develops that a contribution paid without protest was collected either 
wholly or partly without right, then articles 1178 to 1181 shall be correspondingly 
applicable. 

Article 1183. 

The shipowner is liable not only with the ship and the freight, but also personally 
for the contributions, for the advance upon contributions, and for amounts deposited 
as guaranties (art. 1143, No. 10). Joint owners are liable in proportion to their shares 
in the ship. 

Article 1184. 

Paragraph 1. Article 762 is applicable in regard to the covering of contributions 
which can not be collected. 

Par. 2. The accident association may transfer to the manager of the shipping firm 
or represento.tive thereof the compulsory collection of amounts which are a charge 
upon a shipping firm or upon a joint owner. 

IV. transferring amounts to the post office department. 

Article 1185. 

The provisions of the industrial accident insurance are applicable as regards the 
transferring of amounts to the post office (arts. 777 to 782). 

Section Seven. — Branch Institute for Small-Scale Establishments Engaged 
IN Navigation and in Deep-Sea Fishing and Coast Fishing. 

Article 1186. 

Those persons are insured in the branch institute who are engaged in establishments 
engaged in navigation and fishing as described in article 1120. 

Article 1187. 

The following are also insured in the branch institute : 

1. Undertakers subject to the insurance according to article 1058 who conduct 

navigation and fishing establishments as a business. 

2. Those undertakers who are in charge of establishments engaged in navigation 

and fishing of the kind described in article 1120, who have insured themselves. 

Article 1188. 
The branch institute may not undertake other kinds of insurance. 

Article 1189. 

The administrative bodies of the accident association administer the branch insti- 
tute unless the constitution of the latter provides otherv/ise (art. 1194). 

18544°— No. 96—12 22 



678 BULLETIN OF THE BUEEAU OF LABOR. 

Article 1190. 

Paragraph 1. The income and expenditures of the branch institute are to be 
accounted for separately, and its assets are to be kept separately. 

Par. 2. As far as is necessary, the accident association must advance the means for 
conducting the business of the branch institute from the reserve of the association. 

Article 1191. 

The assets which are specified as belonging to the branch institute may not be used 
for the purposes of the accident association. 

Article 1192. 

• The accident association shall bear the cost of administration of the branch institute. 

Article 1193. 

Article 791 shall be applicable in regard to the participation of the branch institute 
in the advance payments to the post office. 

Article 1194. 

The general meeting of Hhe accident association must draw up a separate constitu- 
tion for the branch institute. Article 792, paragraph 2, article 793, Nos. 1, 2, 4, and 6, 
articles 794 and 796 of the industrial accident insurance are correspondingly applicable 
as regards this constitution. Article 793, No. 1, is to be correspondingly applied to 
undertakers subject to the insurance. 

Article 1195. 

Paragraph 1. At least once in every five years the Imperial Insurance Office 
shall specify the contributions in advance. 

Par.*2. These contributions are to be paid by those unions of communes of the 
coast States which include coast districts, and shall be apportioned to the communes 
according to the number of insured persons who are engaged in their districts. The 
highest administrative authority shall specify the details in this connection. 

Par. 3. The Federal Council may order that in the apportionment of the contribu- 
tion, the duration of the employment and variations in the customary daily wages of 
the locality, are to be considered. 

Article 1196. 

Paragraph 1. The individual union of communes shall raise one-half of the con- 
tributions in the same manner as its other expenditures. 

Par. 2. The other one-half of the contributions shall be collected from the under- 
takers affected through the intervention of the union or of the communes. The union 
of communes shall specify the details in this connection. 

Par. 3. The union of communes or the communes are responsible for contributions 
which are not collectible, and with the approval of their supervisory authorities they 
may defray either wholly or partly the cost from their own funds. 

Par. 4. They may specify that the undertakers shall report to their directorate 
every change in the person for whose account the establishment is conducted. If the 
report is not made, then the employer shall be responsible according to article 1137. 

Article 1197. 

The undertaker shall have the right to appeal to the superior insurance office against 
being called on for contributions. 

Section Eight. — Additional Institutions. 

Article 1198. 

The provisions of the industrial accident insurance shall apply to additional insti- 
tutions of the accident association (arts. 843 to 847). 



workmen's INSUEANCE code of JULY 19, 1911 GERMANY. 6Y9 

Section Nine. — Accident Prevention — Supervision. 

I. regulations for the prevention of accidents. 

Article 1199. 

Paragraph 1. The accident association is required to issue the requisite regula- 
tions concerning the following: 

1. For the undertakers concerning the arrangements and rules for the prevention 

of accidents as well as concerning the equipment of vessels; 

2. Concerning the rules of conduct which insured persons must observe for the 

prevention of accidents in establishments. 
Par. 2. The regulations for the prevention of accidents are also to be issued for 
individual districts and for specified classes of vessels or establishments. 

Article 1200. 

An appropriate period of time must be given to the undertakers to provide the 
prescribed arrangements for the prevention of accidents. 

Article 1201. 

Contraventions on the part of undertakers against the regulations may be punished- 
by fines up to 1,000 marks [$238], those of the insured person up to 6 marks [$1.43]. 
The insured person is not to be punished if he has violated regulations in carrying 
out the orders of his superior. 

Article 1202. 

In addition to the shipowner, the accident association may also declare the ship's 
master to be responsible for the execution of the regulations issued as above. For 
each neglected act, fines up to 300 marks [$71.40] can be imposed upon him. 

Article 1203. 

Articles 852 to 856 of the industrial accident insurance are applicable as concerns 
the decisions regarding the regulations and the preparation, while article 857 shall 
apply as regards the attitude to the reports of the technical supervisory officer. 

Article 1204. 

The representatives of the insured persons shall be selected by lot from a number of 
associates competent for navigation in the superior insurance office, and the lot shall 
be drawn by the chairman of the directorate in one of its sessions. 

Article 1205. 

Paragraph 1. The following articles of the industrial accident insurance shall be 
correspondingly applicable in the following cases: 

Article 859 as regards the election of representatives of the insured persons; 
■ Article 861 as regards the election of substitutes for the representatives of the 
insured persons; 
Article 863 as regards the allowances for representatives of insured persons; 
Articles 864 to 868 as regards the approval of the regulations and the procedure 
in preparation thereof. 
Par. 2. The provisions of articles 16, 19 to 22, and 24 as regards elected representa- 
tives of insured persons shall also be correspondingly applicable to these representa- 
tives of the insured persons and their substitutes. 

Article 1206, 

The directorate of the accident association shall communicate the approved regu- 
lations to the higher administrative authorities and all marine offices affected, and 
shall publicly placard the regulations in the business offices of the latter and in the 
seamen's homes. 

Article 1207. 

The directorate of the accident association shall be competent for determining the 
fines imposed on the undertakers. 



680 BULLETIN OF TIIE BUKEAU OF LABOE. 

Article 1208. 

Paragraph 1. That marine office (Seemannsamt) shall determine the fines imposed 
on the masters of vessels which has first recognized the neglect (art. 1202) and shall 
enter the same in the ship's log. These fines are to be collected immediately. 

Par. 2, Against the imposition of such fines, the master of the vessel, the ship's 
owner, manager of the shipping firm or representative shall have the right to appeal 
to the supervisory authority of the marine office (Seemannsamt) within one month 
after the end of the voyage. 

Par. 3. The same or another marine office {Seemannsamt) may again impose a fine 
if in the meantime the order has not been obeyed, unless it can be shown that it was 
impossible of execution. 

Par. 4. The local insurance office shall be competent as regards the imposition of 
fines on the insured persons (art. 1199, par. 1, No. 2). 

ii. .supervision. 

Article 1209. 

Articles 874 and 875 of the industrial accident insurance are applicable as regards 
the execution of the regulations for the prevention of accidents. 

Article 1210. 

Paragraph 1. In order to verify the reports transmitted according to law or con- 
stitution, the accident association can, through accounting officials, inspect the ship's 
log, muster rolls, certificates, bill of tonnage, and other ship's papers and lists from 
which may be ascertained the number of insured persons as well as the extent and 
duration of the completed voyages. 

Par. 2. The local insurance office may also undertake such examination. 

Article 1211. 

With the approval of the Imperial Insurance Office, the business of the technical 
upervisory official and the accounting official may be combined in one person. 

Article 1212. 

In their business office, the authorities are under obligation to place open for inspec- 
tion of the accounting officials of the accident association all transactions and docu- 
ments which relate to conditions of the vessel and the crew thereof. 

Article 1213. 

Paragraph 1. The ship's owners, managers of the shipping concern, and representa- 
tives as well as masters of vessels must permit the technical supervisory officials to 
enter their vessels and inspect the same and must open for inspection on the spot the 
ship's papers and lists for the inspection of the accounting officials. 

Par. 2. In the same manner, the other undertakers must permit the inspection of 
Jiheir establishments and present their lists for inspection. 

Article 1214. 

Paragraph 1. The marine office {Seemannsamt) may investigate vessels for the 
purpose of ascertaining whether the regulations for the prevention of accidents have 
been complied with. 

Par. 2. The obligations arising out of articles 1212 and 1213 are also applicable to 
the marine office. The marine office must be permitted to enter fines imposed by 
it in the ship's log. 

Article 1215. 

Upon the application of the technical supervisory officials or of the accounting 
officials, the marine office {Seemannsamt) can impose upon persons, obliged to do so 
according to articles 1210, 1213, and 1214, fines up to 300 marks [$71.40] to force them 
to perform their duties. 



workmen's insurance code CF JULY 19, 1911 — GERMANY. 681 

Article 1216. 

Paragraph 1. The provisions of the industrial accident insurance are applicable 
as regards the following: 

Taking of the oath (art. 882); 

Communicating the name and residence of the technical supervisory officials as 
well as the activities of the latter (art. 883). 
Par. 2. However, the higher administrative authorities or the authorities or officials 
designated by them shall take the place of the State supervisory official in regard to 
the communication. 

Article 1217. 

Paragraph 1. The provisions of the industrial accident insurance are applicable in 
regard to — 

Damages to the undertakers in the case of neglecting to comply with the obliga- 
tion as regards supervision (art. 887); 
Supervision thi'ough the local insurance office and the Imperial Insurance Office 
(arts. 888 and 889). 
Par. 2. The accident association is also authorized in case of inspection of unclassi- 
fied vessels to collect from the owners of the latter those costs which have arisen through 
the determination of the condition of the hull of the vessel and the machinery equip- 
ment and which were an increase as compared with the cost of inspecting classified 
vessels. Costs of this kind shall likewise be collected in the same manner as com- 
munal taxes. 

Section Ten. — Establishments of the Empire and of the States. 

Article 1218. 

Paragraph 1. Articles 892, 893, 895, and 887 are coiTespondingly applicable when- 
ever the Empire or a federal State shall take the place of the accident association. 

Par. 2. In such a case, the following provisions of the navigation accident insur- 
ance shall not apply: 

The provisions concerning dissolution of the accident association (art. 1122 in 

connection with art. 647, pars. 1 and 3); 
The provisions in regard to the constitution contained in articles 1123 to 1156 

and article 1157 in connection with articles 717 to 720; 
The provisions concerning supervision (art. 1158); 

The provisions in regard to raising of funds as well as the procedure in the assess- 
ment and collection (arts. 1162 to 1184); 
The provisions concerning transferring of amounts to the post office contained in 

article 1185 in connection with articles 781 and 782; 
The provisions in regard to the branch institute (arts. 1186 to 1197); 
The provisions relating to additional institutions (art. 1198); 
The provisions relating to the prevention of accidents and supervision contained 

in articles 1199 to 1216 and article 1217, paragraph 1, in connection with articles 

887 and 889 as well as article 1217, paragraph 2; 
The penal provisions contained in articles 1220 to 1223 and 1224 in connection 

with article 910. 

Section Eleven. — Liability op Undertakers and their Representatives. 

Article 1219. 

Paragraph 1. The provisions of the industrial accident insurance (arts. 898 to 907) 
are applicable as regards the liability of undertakers and their employees. 

Par. 2. In such cases joint owners, pilots and persons of the ship's crew shall have 
the same status (art. 899). 

Par. 3. This provision shall apply in the case of collision of several vessels which 
are subject to the navigation accident insurance, to thie shipowners of all vessels 
affected thereb)^ and to all persons having an equal status with the shipowners. 

Par. 4. Claims for compensation for damages sustained through accident, which 
a person insured in the branch institute has in the case of bodily injury according to 
law for the first 13 weeks, shall be retained, provided that the injured person does 
not have a claim to the benefits of the sickness insurance against a sick fund, miners' 
sick fund or substitute fund, or if the injured person is exempt from the insurance on 
account of being entitled to benefits of equal value. 



682 BULLETIN OF THE BUKEAU OF LABOE. 

Par. 5. However, the obligation to provide relief which rests upon the shipowner 
on the basis of articles 553 to 5536 of the Commercial Code and articles 59 to 62 of the 
Navigation Code are not affected hereby. 

Section Twelve. — Penal Provisions. 

Article 1220. 

The accident association may impose fines up to 500 marks [$119] upon undertakers, 
joint owners, managers of shipping firms, representatives and masters of vessels if in. 
the three cases mentioned herewith the reports actually contained statements whose 
incorrectness these persons either knew or under the circumstances must have known; 
these cases are the following: 

1. Reports of the kind not designated in article 1581 which they have transmitted 

in compliance with the law or constitution; 

2. An information which is demanded of them according to the law or constitu- 

tion; 

3. Explanations which must be transmitted to the competent official bodies of 

of the accident association for the purpose of assignment to risk classes. 

Article 1221. 

The directorate of the accident association may in addition impose a fine up to 
300 marks [|71.40] upon persons designated in article 1220 if they do not promptly 
comply with their duties as specified m the law or in the constitution as regards the — 

1. Appointment of representatives or communication of their names or change of 

them to the directorate of the accident association; 

2. Reporting of changes in the establishment; 

3. Transmission of reports ; 

4. Furnishing of information; 

5. Complying with the provisions of the constitution in regard to the shutting 

down of establishments. 

Article 1222. 

In so far as on the basis of this law undertakers or joint owners are liable to penalties 
the following persons shall be considered as having the same status: 

1. All members of the directorate wherever- a stock company, mutual insurance 

association, registered cooperative society, guild, or other legal person is the 
undertaker or joint owner; 

2. The business managers, if an association with limited liability is the under- 

taker or joint owner; 

3. All copartners personally liable provided that they are not excluded from 

representation if another form of business corporation is the undertaker or 
joint owner; 

4. The legal representative of undertakers not legally competent to transact 

business, or partially so, as well as liquidators of a_ business corporation, a 
mutual insurance association, a registered cooperative society, a guild, or 
any other legal person. 

Article 1223. 

The employer is liable for the fines which according to article 1183 have been im- 
posed upon him or the ship's master upon the basis of articles 1220 to 1222. 

Article 1224. 

The following provisions of the industrial accident insurance shall be correspond- 
ingly applicable: 

Article 910 in regard to appeals against the determination of fines; 
Article 911 in regard to deducting the contributions from the earnings and in 
such cases shall also be applicable to joint owners, masters of vessels and their 
employees ; 
Article 914 in regard to the funds to which the fines shall accrue, however, in 
place of the sick fund of the place of employment, that sick fund shall receive 
the siim in whose district the establishment has its seat. 

Article 1225. 

The provisions against limiting the insured i>ersons in their rights contained in 
this law (art. 139) shall also apply to joint owners, master of vessels and their em- 
ployees and likewise the penal provisions as regards contravention (art. 140). 



workmen's INSUKANCE code of JULY 19, 1911 GERMANY. 683 

BOOK FOUR— INVALIDITY AND SURVIVORS' INSURANCE. 

Section One. — Scope of the Insurance. 
I. compulsory insurance. 

Article 1226. 

Paragraph 1, Beginning with the completed sixteenth year of age, the following 
persons are insured in case of invalidity and old age and in addition in favor of their 
survivors as specified herewith: 

1. Workmen, helpers, journeymen, apprentices, and servants. 

2. Establishment officials, foremen, and other employees in similar higher posi- 

tions if such employment is for all of them their principal occupation. 

3. Clerks and apprentices in commercial establishments, clerks and apprentices 

in pharmacies. 

4. Members of the stage and of orchestras without regard to artistic value of their 

services. 

5. Teachers and tutors. 

6. The crews of German seagoing vessels and the crews of vessels engaged in in- 
• land navigation. 

Par. 2. The prerequisite of insurance for all of these persons is that they shall be em- 
ployed for compensation (art. 160), and for those designated under Nos. 2 to 5, as well 
as for masters of vessels that their regular annual earnings in the form of compensation 
shall not exceed 2,000 marks [1476]. 

Article 1227. 

An employment in which the compensation consists only of free board and lodging 
is exempt from insurance. 

Article 1228. 

Those Germans are also insured who are employed in an official representative office 
of the Empire or of a federal State in a foreign country or employed by the directors 
or members thereof. 

Article 1229. 

The Federal Council may either generally or for single districts extend the insurance 
obligation for specified branches of the industry to the following: 

1 . Persons carrying on business or other undertakers of establishments who regu- 

larly employ in their establishments either no one or at the most one person 
subject to the insurance. 

2. Persons engaged in home- working industries (art. 162) without regard to the 

number of their home-working employees. 

Article 1230. 

The Federal Council may specify in how far persons conducting a business (or per- 
sons giving the order, art. 469) are required to fulfill the obligations of an employer 
for the following: 

1. Persons engaged in home work upon their order and for their account, as well 

as home-working employees of such persons; 

2. Persons employed in home work upon their order by intermediate persons, 

distributors, factors, and zwischenmeisters. 

Article 1231. 

The Federal Council may specify how far Germans in the service of foreign States 
and such persons who are not subject to German jurisdiction are required to fulfill the 
obligation of employers. 

Article 1232. 

The Federal Council shall specify in how far temporary services shall remain 
exempt from the insurance. 



684 BULLETIN OF THE BUEEAU OF LABOR. 

Article 1233. 

Paragraph 1. The Federal Council may specify that foreigners shall be exempt 
from insurance whose sojourn in Germany has been permitted by the authorities for 
only a specified time. 

Par. 2. In such cases, the employer shall pay according to the orders of the Imperial 
Insurance Office such an amount to the insurance institute as they would otherwise 
have to pay from their own means. 

Article 1234. 

Paragraph 1. Exempt from the insurance are employees in the establishments 
or in the service of the Empire, of a federal State, of a union of communes, and of a 
commune or of an insurance carrier, if there has been guaranteed to them a claim to 
retirement pension equal to the minimum amount of the invalidity pension according 
to the rates of the first wage class as well as to widows ' pension according to rates of 
the same wage class and likewise to orphan's pensions. 

Par, 2. The same shall apply to teachers and tutors in the public schools or insti- 
tutions. 

Article 1235. 

The following are exempt from the insurance: 

1. Officials of the Empire, of the federal States, of the unions of communes, of the 

communes, of the insurance carriers, and teachers and tutors in the public 
schools or institutions, as long as they are being trained solely for their occu- 
pation; 

2. Military persons who carry on during their service or during their training for a 

civil employment, one of the occupations designated in article 1226, to which 
article 1234 is to be applied; 

3. Persons who are employed in teaching for a compensation, during the scientific 

training for their future occupation. 

Article 1236. 

Whoever is receiving an invalidity or survivors' pension according to imperial law 
or is an invalid shall be exempt from insurance (arts. 1255 to 1258). 

Article 1237. 

Upon application the following persons shall be exempt from the insurance obliga- 
tion, if they have been guaranteed retirement pensions, part pay, or similar receipts 
equal in amount to the minimum invalidity pensions according to the rates of the 
first wage class and in such connection have been guaranteed a claim to survivors' 
relief (art. 1234). These persons are — 

Whoever has been guaranteed these benefits by the Empire, a federal State, a 

union of communes, a commune, or an insurance carrier; 
Whoever has been guaranteed these benefits on the basis of earlier employment 
as teacher or tutor in a public school or institution. 

Article 1238. 

Upon their application, there shall be exempt from the insurance obligation, those 
persons subject to the insurance who have been employed during or after the time of 
their college training as preparation for their future occupation, or have been employed 
in a position which forms a transitory step to an employment both exempt from insur- 
ance and corresponding to an employment requiring a college training. 

Article 1239. 

Paragraph 1. Upon his application there shall be exempt from insurance obli- 
gation whoever in the course of a calendar year undertakes work for wages only in 
specified seasons of the year for not more than 12 weeks or all together for not more than 
50 days, but in other respects procures independently his maintenance or is employed 
without compensation. The exemption is permissible only as long as, according to 
article 1279, 100 computable weekly contributions have not been paid. 

Par. 2. The Federal Council may determine particulars hereto. 



workmen's insurance code of JULY 19, 1911 — GERMANY. 685 

Article 1240. 

Paragraph 1. The local insurance office (decision committee) competent for the 
place of residence of the person making the application shall decide thereon. If the 
applicant has no residence in Germany, then the local insurance office of the place of 
his permanent abode shall decide. On appeal, the superior insurance office shall 
decide finally. 

Par. 2. Exemption shall be effective from the date of receipt of the application. 

Article 1241. 

Paragraph 1. The local insurance office (decision committee) shall revoke the 
exemption as soon as the prerequisites required thereby are no longer present; upon 
appeal the superior insurance office shall decide finally. 

Par. 2. The insurance obligation shall again enter into force upon the relinquish- 
ment of the exemption and upon its final revocation. 

Article 1242. 

Upon the application of the employer, the Federal Council shall specifv in how far 
articles 1234 and 1235, No. 1, articles 1237, 1240 and 1241 shall be applicable to the 
following : 

1. Persons employed in establishments or in the service of other public unions or 

corporations or as teacher and tutor in nonpublic schools and institutions, if 
the claims designated in article 1234 have been guaranteed to them or if they 
are only being trained for their occupation; 

2. Persons to whom on the basis of earlier employment in such unions or corpora- 

tions, schools or institutions, have been guaranteed retirem.ent pensions, part 
pay, or similar benefits equal to the minimum amount of the invalidity pen- 
sion according to the rates of the first wage class, and in addition thereto have 
been guaranteed a claim to survivors' relief (art. 1234); 

3. Officials and employees of the court, domanial, cameralistic, forestry, and 

similar administrations of the State sovereigns, as well as of the ducal regency 
of Brunswick and the administration of the entailed estates of the princes of 
Hohenzollern. 

II. voluntary insurance. 

Article 1243. 

Paragraph 1. Up to their completed fortieth year of age the following persons are 
entitled to join the insurance voluntarily (self-insurance) : 

1. The persons designated in article 1226 under Nos. 2 to 5 and masters of vessels, 

if their regular annual earnings are more than 2,000 marks [$476] but do not 
^/ exceed 3,000 marks [$714]; 

2. Persons carrying on a business and other undertakers of establishments who 

employ regularly in their establishments either no one or at the most two per- 
sons subject to the insurance, as also persons engaged in home work; 

3. Persons who are exempt from the insurance according to articles 1227 and 1232. 
Par. 2. When they cease to comply with the conditions which are the basis for 

self-insurance, those entitled to self-insurance may continue the same or renew it at 
a later time according to article 1283. 

Article 1244. 

y'^ Whoever ceases to have the status of a person subject to the insurance may volun- 
tarily continue the insurance or renew it at a later time according to article 1283 
(continuation of insurance). 

III. wage classes. 

Article 1245. 

The follomng classes are created for insured persons on the basis of the amount of 
the annual earnings : 

Class I, up to 350 marks [$83.30]; 

Class II, over 350 marks [$83.30] and up to 550 marks [$130.90]; 
Class III, over 550 marks [$130.90] and up to 850 marks [$202.30]; 
Class IV, over 850 marks [$202.30] and up to 1,150 marks [$273.70]; 
Class V, over 1,150 marks [$273.70]. 



686 BULLETIN OF THE BUEEAU OF LABOR. 

Article 1246. 

Paeaoeaph 1. Unless the following j)ro visions specify otherwise, an average 
amount instead of the actual annual earnings shall be decisive -as regards the appor- 
tionment to the wage classes. 

Par. 2. The annual earnings shall be considered as the following: 

1. For members of a sick fund or of a miner's sick fund, 300 times the basic 

wage (arts. 180, 181), 

2. For seamen insured on the basis of article 1046, number 1, in so far as the 

imperial chancellor has determined for them an average amount (arts. 1067 
to 1071), the amount so determined. 

3. Otherwise 300 times the amount of the local wage rate in so far as the superior 

insurance office has not specified it otherwise for single branches of industry. 
Par. 3. Agricultural establishment officials belong to the third class and teachers 
and tutors to the fourth class in so far as the former do not show annual earnings in 
excess of 850 marks [$202.30] and the latter in excess of 1,150 marks [$273.70]. 

Article 1247. 

If a fixed cash compensation has been agreed upon in advance for periods of weeks, 
months, quarters, or years and this exceeds the average amount, then the cash com- 
pensation is to be used. 

Article 1248. 

Insurance in a higher wage class is permitted, but the employer is only then re- 
quired to pay the higher contribution if he has made an agreement with the insured 
person to this effect. 

Article 1249. 

The insurance institute shall publish the wage classes and the contributions for 
the individual localities of its district and for each group of insured persons. 

Section Two. — ^Benefits of the Insurance. 

i. general provisions, 

Article 1250. 

The benefits of the insurance consist of invalidity pensions or old-age pensions, 
as well as pensions, widows' money, and orphans' settlements for the survivors. 

Article 1251. 

Invalidity or old-age pensions shall be received by whoever proves the existence 
of invalidity or of the age specified in the law as well as proof of the waiting term 
and has kept his claim in force. 

Article 1252. 

Relief for survivors shall be granted if the deceased at the time of his death had ful- 
filled the waiting term for invalidity pensions and had kept the claim alive; widow's 
Taoney and orphan's settlements shall be granted only if the widow in addition at 
the time when these benefits became due has herself fulfilled the waiting term for 
invalidity pensions and has kept the claim alive. 

Article 1253. 

Computed from the receipt of the application therefor, no arrears of pension shall 
be paid for more than one year of the period preceding the application, unless the 
person entitled has been hindered through conditions which were beyond his con- 
trol from making the application at the proper time. In such case, the application 
shall be made within three months after the preventing cause has been removed. 

Article 1254. 

Paragraph 1. Whoever purposely makes himself an invalid shall lose the claim 
to a pension. 

Par. 2. If the insured person or the widow has incurred the invalidity while com- 
mitting an act which according to the verdict of a court is a crime, or intentional 



workmen's insurance code of JULY 19, 1911 GERMANY. 687 

misdemeanor, then the pension may be denied either wholly or in part. Contra- 
ventions of mining regulations or of article 93, paragraphs 2 and 3, and articles 95 
to 97, of the Navigation Code, shall not be considered as misdemeanors in the mean- 
ing of the preceding sentence. Invalidity pensions or widows' pensions may be either 
wholly or partly transferred to relatives living in Germany if the insured person or 
the widow have previously either wholly or partly supported them from their earn- 
ings. In the meaning of this paragraph, German protectorates shall be considered 
as parts of the Empire. 

Par. 3. The pension may also be denied if no verdict of a court has been rendered 
because of the death, absence, or any other cause connected with the person of the 
applicant. 

ii. invalidity pensions. 
Article 1255. 

Paragraph 1. Without regard to age, an insured person shall receive an invalidity 
pension if, as the result of sickness or other infirmity, he has become a permanent 
invalid. 

Par. 2. That person shall be considered an invalid who is no longer in a condition 
to earn, through work which corresponds to his powers and abilities, and which with 
a proper consideration of his education and his previous occupation he may be ex- 
pected to perform, one-third of that amount which persons physically and mentally 
sound of the same kind and with similar education are accustomed to earn through 
labor in the same region. 

Par. 3. Invalidity pensions shall also be received by insured persons who are 
not permanent invalids, but who have been such during 26 weeks without inter- 
ruption or have been invalids after the cessation of the pecuniary sick benefit; the 
compensation shall be paid for the further duration of the invalidity (sickness 
pensions). 

Article 1256. 

The invalidity pension shall commence on the day on which the invalidity begins, 
but without affecting articles 1253 and 1255, paragraph 3. If the beginning of the 
invalidity can not be determined, this date shall be considered as the one on which 
the application for a pension was received by the local insurance office. 

iii. old-age pensions. 

Article 1257. 

Old-age pensions shall be received by the insured person beginning with the com- 
pleted seventieth year of life even if he is not an invalid. 

iv. benefits of survivors. 
Article 1258. 

Paragraph 1. The widow's pension shall be received by a permanently invalided 
widow after the death of her insured husband. 

Par. 2. That widow shall be considered an invalid who is no longer in a condi- 
tion to earn, through work which corresponds to her powers and abilities, and which 
with a proper consideration of her education and her previous social status she may 
be expected to perform, one-third of that amount which physically and mentally 
sound women of the same kind and with similar education are accustomed to earn 
through labor in the same region. 

Par. 3. Invalidity pensions shall also be received by widows who are not perma- 
nent invalids, but who have been such during 26 weeks without interruption, or 
have been invalids after the cessation of the pecuniary sick benefit; the compen- 
sation shall be paid for the further duration of the invalidity (widows' sickness 
pensions) . 

Article 1259. 

Orphans' pensions shall be received after the death of the insured father by his 
legitimate children under 15 years of age, and after the death of a female insured 
person by her fatherless children under 15 years of age. Illegitimate children shall 
also be considered as fatherless. 



688 BULLETIN OF THE BUREAU OF LABOR. 

Article .1260. 

Paragraph 1. After the death of the insured wife of a disabled husband, who 
during her life has supported her family either wholly or principally put of her earn- 
ings, the legitimate children under 15 years of age shall receive orphans' pensions 
and the husband a widower's pension as long as the indigence lasts. 

Par, 2. In regard to orphans' pensions, this provision shall be applicable even 
if at the time of the death of the insured person the marriage had been dissolved. 

Article 1261. 

Paragraph 1. After the death of the insured wife, whose husband without legal 
grounds has remained away from the common household and has not complied with 
his duties of support as a father, the legitimate children under 15 years of age shall 
receive orphans' pensions as long as they are indigent. 

Par. 2. This provision shall also apply if at the time of the death of the insured, 
the marriage had been dissolved and the husband has failed to fulfill his duty of 
support as a father. 

Article 1262. 

If the insured person leaves orphan grandchildren under 15 years of age whose 
support, either wholly or partially, he had defrayed, then they shall receive orphan's 
pensions as long as they are indigent. 

Article 1263. 

The pensions of the survivors begin with the date of death of the one furnishing 
the support. If the widow on this date was not yet an invalid, then the beginning 
of the pension shall be determined by article 1256 or article 1258, paragraph 3. 

Article 1264. 

The widow's money shall become due at the death of the husband and orphan's 
settlements at the completion of the fifteenth year of the lives of the children. 

Article 1265. 

Paragraph 1. The legal benefits shall also be granted in cases when the insured 
person is missing. He shall be considered as missing if during one year no trust- 
worthy news has been received concerning him and the circumstances make his 
death seem probable. 

Par. 2. The local insurance office may demand from the survivors a solemn declara- 
tion that they have received no news concerning the existence of the missing person 
other than that which they have reported. 

Article 1266. 

The date of the death of the missing person shall be fixed by the insurance institute 
according to its own discretion. Article 1100, paragraph, 1, shall be applicable as 
regards persons who have disappeared while at sea. 

Article 1267. 

Survivors shall have no claim to the benefits if they have intentionally brought 
about the death of the insured person. 

Article 1268. 

Paragraph 1. The claim of the survivors of a foreigner, if they at the time of his 
death did not customarily live in Germany, shall be limited to one-half of the bene- 
fits without the imperial subsidy. 

Par. 2. The Federal Council may suspend this limitation for foreign border 
territories or for subjects of such foreign States whose legislation guarantees correspond- 
ing relief. 

Par. 3. In the meaning of paragraph 1, German protectorates shall be considered 
as parts of the Empire. 



WORKMEN ^S INSURANCE CODE OF JULY 19, 1911 GERMANY. 689 

v. medical treatment. 

Article 1269. 

In order to prevent impending invalidity of an insured person or of a widow result- 
ing from sickness, the insurance institute may inaugurate a course of medical treat- 
ment. 

Article 1270. 

Paragraph 1. The insurance institute may in particular place the insured person 
in a hospital or in an institution for convalescents. 

Par. 2. If the sick person is married and lives together with his family or has a 
household of his own, or is a member of the household of his family, then his con- 
sent thereto shall be required. 

Par. 3. In the case of a minor person, his consent shall be sufficient. 

Article 1271. 

The relatives of the sick person whose support he has either wholly or principally 
defrayed out of his earnings shall, during the course of treatment (art. 1270) receive 
house money even in cases where he has no claim against the sick fund, the miners' 
sick fund, or the substitute fund. It shall amount to one-fourth of the local wage for 
an adult day laborer. If, howoA^er, up to the assumption of the matter by the insurance 
institute, the sick person was subject to the sickness insurance, the house money shall 
be based on the provisions of the sickness insurance for that time also for which the 
obligation of the sick fund no longer exists. An invalidity pension or widow's pension 
may be either wholly or partly refused for the duration of the course of treatment. 
The house money shall not be paid, for the time and to the extent that wages or salary 
are paid, on the basis of a legal claim. 

Article 1272. 

If the sick person without legal or other reasonable ground declines to receive the 
medical treatment (art. 1269) and if the invalidity could probabl}^ have been prevented 
through the medical treatment, then the pension may, for the time being, be refused 
either wholly or partly if the sick person has been notified of this consequence. 

Article 1273. 

In regard to controversies which have not been settled on the determination of the 
pension, the superior insurance office shall decide finally upon the appeal. 

Article 1274. 

With the approval of the supervisory authority, the insui*ance institute may expend 
its funds to promote or to carry out general measures for the prevention of premature 
invalidity among insured persons or improve the health conditions of the population 
subject to the insurance. Approval may also be granted for the expenditure of lump 
sums. 

VI. payments in kind instead of pensions. 

Article 1275. 

Paragraph I. With the approval of the higher administrative authority, the com- 
munes or unions of communes may by legal enactment specify that pensions up to two- 
thirds of their amount shall not be paid in cash but in kind. This shall apply only to 
pensioners who reside in the district: Provided, That these or those supporting them 
receive no wages as agricultural workers, but according to local custom are paid either 
wholly or partly in kind, and provided a mutual agreement is reached concerning the 
payment in kind instead of a pension. 

Par. 2. In the case of orphans' pensions, the consent of the guardian shall be re- 
quired in addition. The latter must secure the approval of the orphans' court. 

Par. 3. The value of the commodities shall be determined by the higher adminis- 
trative authority according to the average prices. 

Article 1276. 

Paragraph 1. Payments in kind shall be granted by the commune of the place of 
residence. The claim to the pension shall be transferred to the commune to the extent 
of the value of the payments in kind. 



690 BULLETIN OF THE BUKEAU OF LABOR. 

Par. 2. The local insurance office (deciBion committee) shall decide controversies 
between the commune and the beneficiary. The superior insurance office shall decide 
finally upon appeal. 

Par. 3. If the claim to the pension has been transferred to the commune finally, then 
the insurance institute shall notify the Post Office Department. 

Article 1277. 

Paragraph 1. The constitution of the insurance institute may authorize the direc- 
torate to place the pensioner, upon his application, in a home for invalids or orphans' 
home or in a similar institution and use the pension either wholly or partly for this 
purpose. 

Par. 2. Invalid homes and similar institutions shall be considered as hospitals, 
asylums, and medical institutions in the meaning of article 11, paragraph 2, and article 
23, paragraph 2, of the law relating to the place of residence as regards the claim for 
support (Reichs-Gesetzblatt, 1908, p. 381). 

Par. 3. Placing the pensioner in such an institution operates as relinquishment of 
the pension for one-quarter of a year, and if he does not object to the same within one 
month before the expiration of this time, each time for an additional quarter of a year. 

VII. waiting term. 

Article 1278. 

The duration of waiting term shall be — 

1. In the case of invalidity pensions, if on the basis of the insurance obligation at 

least 100 contributions have been paid for the insured, 200 and in other 
cases 500 contributory weeks. 

2. In the case of old age-pensions, 1,200 contributory weeks. 

Article 1279. 

Paragraph 1. The contributions for voluntary insurance shall be included in the 
waiting term for invalidity pensions only if at least 100 contributions on the basis of the 
insurance obligation or of self -insurance have been paid. 

Par. 2. This shall not apply to the contributions which the insured person has 
voluntarily paid in the first four years after his branch of industry has become subject 
to the insurance. 

VIII. expiration of the claim. 

Article 1280. 

The claim shall cease if, during two years after the date of issue designated on the 
receipt card (art. 1416), less than 20 weekly contributions have been paid on the basis 
of the insurance obligation or of the continuation of the insurance. 

Article 1281. 

In the meaning of article 1280, the following periods are to be counted as weekly con- 
tributions : 

1. Periods of military service, and of sickness (arts. 1393 and 1394). 

2. The periods of employment not subject to the insurance during which the 

claimant or the deceased has received an invalidity or old-age pension from 
a sick fund or special institute of the kind designated in articles 1321, 1360, 
and 1375, or has received an accident pension equal to at least one-fifth of 
the full pension. 

Article 1282. 

In the case of self-insurance and its continuation, there must have been paid for the 
maintenance of the claim at least 40 contributions during the period designated in 
article 1280. This shall not apply if on the basis of the insurance obligation more than 
60 contributions have been paid. 

Article 1283. 

Paragraph 1. The claim shall again become effective if the insured person again 
takes up an employment subject to the insurance or if he renews the insurance status 
through voluntary payment of contributions and accordingly has completed a waiting 
term of 200 contributory weeks. 



workmen's INSXJK^NCE CODE OF JVLY 19, 1911 GERMANY. 691 

Par. 2. If the insured person by again taking up the employment subject to the 
insurance, or by renewipg the insurance status through voluntary payment of con- 
tributions, has completed the sixtieth year of life, then the claim shall only become 
effective if before the time when the claim expires he has made use of at least 1,000 
contributory stamps. 

Par. 3. If the insured person has completed the fortieth year of life, then the claim 
shall become effective through voluntary payment of contributions, only if before the 
expiration of the claim he has used 500 contributory stamps, and accordingly has com- 
pleted a waiting term of 500 contributory weeks. 

ix. computation op insurance benefits. 
Article 1284. 

Paragraph 1. The insurance benefits consist of a fixed imperial subsidy and of a 
share from the insurance institute. 

Par. 2. If the full pension amounts are not paid, then the shares of the Empire and 
of the insurance carrier shall be correspondingly reduced. 

Article 1285. 

The imperial subsidy shall consist of 50 marks [$11.90] annually for each invalidity 
pension, old-age pension, widow's pension, widower's pension, and 25 marks [$5.95] 
for each orphan's pension, single payments of 50 marks [$11.90] for each widow's money, 
and 16f marks [$3.97] for each orphan's settlement. 

Article 1286. 

The share of the insurance institute shall be based on the contributions and on the 
periods of military servdce and sickness which are considered as contributory weeks. 

Article 1287. 

In the case of invalidity pensions the insurance institute pays a basic amount and 
the supplementary increases; in the case of survivors' pensions, of widows' money and 
of orphans' settlements, it pays a part of the basic amount and of the supplementary 
increases, and in the case of old-age pensions a fixed annual amount. 

Article 1288. 

Paragraph 1. The basic amount of the invalidity pension shall always be com- 
puted upon 500 contributory weeks. If less than this number are proved, then the 
number lacking shall be added from wage class I ; if there are more than this number, 
then the contributions in excess which have been paid in the lower wage classes shall 
not be considered. 

Par. 2. For each contributory week there shall be credited the following: 

Pfennigs. 

In wage class 1 12 [$0,029 

In wage class II 14 [ .033 

In wage class III 16[ . 038 

In wage class IV 18 [ . 043' 

In wage class V 20 [ . 048 

Article 1289. 

The supplementary increase of the invalidity pension shall for each contributory 
week amount to the following: 

Pfennigs. 



In wage class 1 3 

In wage class II 6 

In wage class III 8 

In wage class IV 10 

In wage class V 12 

Article 1290. 



$0. 007 
. 014 
. 019 
. 024 
.029 



For each contributory week, one contribution only shall be considered. If a larger 
number of contributory weeks has been affixed and the stamps in excess can not be 
determined, then the contributions of the lowest wage classes are to be stricken out 
until only the highest amount permissible remains. 



692 BULLETIN OF THE BUREAU OF LABOR. 

Article 1291. 

If the beneficiary of the invalidity pension has children under 15 years of age, then 
the invalidity pension shall be increased for each child by one-tenth, but not to exceed 
one and one-half times the amount of the invalidity pension. 

Article 1292. 

In the two cases stated herewith the share of the insurance institute equals the 
specified part of the basic amount and of the supplementary increases of the invalidity 
pension which the one providing the support at the time of his death had received or 
in the case of invalidity would have received. These cases are the following: 

In the case of widows' pensions and widowers' pensions, three-tenths of the basic 

amount and of the increases; 
In the case of orphans' pensions, for one orphan three-twentieths, for each addi- 
tional orphan one-fortieth, of the basic amount and of the increases. 

Article 1293. 

Paragraph 1. The share of the insurance institute in old-age pensions amounts to 
the following: 

Marks. 

In wage class 1 60 [$14. 28] 

In wage class II 90 [ 21. 42] 

In wage class III 120 [ 28. 56] 

In wage class IV 150 [ 35. 70] 

In wage class V 180 [ 42. 84] 

Par. 2. For contributions of different wage classes the corresponding average shall 
be granted. If more than 1,200 contributory weeks are proved, then the contributions 
in excess which have been made in the lowest wage class shall not be considered. 

Article 1294. 

Paragraph 1. The pensions of the survivors may not together amount to more than 
one and one-half times the invalidity pension which the deceased at the time of 
death was receiving or in the case of invalidity would have received. 

Par. 2. Orphans' pensions alone may not together amount to more than this inva- 
lidity pension. 

Par. 3. If the pensions together add to a higher amount, then they shall be reduced 
in proportion to their size. 

Par. 4. Grandchildren have a claim only in so far as the highest amount allowable 
does not accrue to the children. 

Article 1295. 

Whenever one survivor ceases to receive a pension the pensions of the others are 
raised to the highest amount allowable. 

Article 1296. 

The widow's money shall be equal to 12 times the monthly amount of the widow's 
pension, and the orphan's settlement 8 times the monthly amount received as orphan's 
pension. 

Article 1297. 

The pension shall be paid in monthly installments in advance and rounded upward 
to full sums of 5 pfennigs [1.19 cents]. 

X. cessation op the benefits. 

Article 1298. 

The widow's pension and the widower's pension shall cease in the case of remar- 
riage. 

Article 1299. 

The orphan's pension shall cease as soon as the orphan has completed the fifteenth 
year of life. 



WOEKMEIt's INSUEANCE code of JULY 19, 1911 GEEMANY. 693 

Article 1300. 

The claim to \Yidow's money expires if the claim has not been filed within one year 
after the death of the husband. 

Article 1301. 

Paragraph 1. For the month of death and the month during wliich the payment 
ceases the pension shall be paid in full, subject to articles 1295 and 1318. 

Par. 2. In cases where there is a part of a month, including in addition to the pension 
of the insured person that of the survivors, then they shall claim the higher amount. 

Article 1302. 

If at the death of the beneficiary the pension due has not been collected, then those 
entitled to receive the same are eligible in the order named: The husband or wife, the 
children, the father, the mother, the brothers and sisters, provided that at the time of 
his death they were li\ing with the beneficiary in a common household. 

Article 1303. 

Paragraph 1. If an insured person or a person entitled to receive a -widow's pension 
and widower's pension, or widow's money, dies after he has filed his claim, then the 
following in the order named are entitled to continue the procedure and to receive 
the amounts duo up to the date of death, namely, the husband or wife, the children, 
the father, the mother, the brothers and sisters, provided that at the time of his death 
they were li\ing with, the one entitled thereto in a common household. 

Par. 2. If the orphan entitled to an orphan's settlement dies before its payment, 
then the local insurance office at its own discretion shall specify to whona it is to 
be paid. 

XI. withdrawal of the pension. 
Article 1304. 

If the beneficiary of an invalidity pension or widow's pension because of an impor- 
tant change in his condition is no longer an invalid in the meaning of articles 1255 
and 1258, then the insurance institute shall withdraw the pension. 

Article 1305. 

If it is to be expected that a course of medical treatment would restore the earning 
capacity of the beneficiary of an invalidity pension, -widow's pension, or widower's 
pension, then the insurance institute may inaugurate such treatm.ent. In such cases 
articles 1270, 1271, and 1273 are correspondingly applicable. The relatives of the 
beneficiaries of widow's pensio2is or of widower's pensions shall receive no house 
money. 

Article 1306. 

If the pensioner without legal or other reasonable groimd therefor declines to 
receive the course of medical treatment, and thereby hinders the removal of invalidity, 
or if he declines without reason to submit to a subsequent investigation or observation 
canied on in a hospital, then the pension may for the time be withdrawn either wholly 
or partly: Provided, That he has been notified of this consequence. 

Article 1307. 

Widowers' pensions and orphans' pensions which liave been gi'anted according to 
articles 12t'30 to ]2o2 shall be -withdrawn by tlie insurance institute as soon as the indi- 
gence of the recipient has ceased . 

Article 1308. 

The decision which withdraws the pension shall become effective on the expiration 
of the month following its commimication. 

Article 1309. 

If the invalidity pension or -widow's pension has been granted anew or has been 
granted in the place of a sickness pension, or if an old-age pension is gi'anted, then the 

18544°— No. 96—12 23 



694 BULLETIN OF THE BUKEAU OF LABOR. 

time of the previous receipt of the pension by the insured person shall be included 
in the computation in the same manner as is done for a proved period of sickness (art. 
1394, par. 2). During the time of the previous receipt of the pension the claim shall 
not expire. 

Article 1310. 

If it is proved that the insured person who was considered to have disappeared is 
still alive, then further payments of the pension shall be suspended. The insurance 
institute does not need to demand the return of the pension paid without right. 

xii. suspension op the pension — capital sum settlements. 

Article 1311. 

Paragraph 1. The pension shall be suspended if it is received at the same time 
as an accident pension granted under the imperial laws herewith and if the two together 
exceed — 

1. In the case of invalidity pensions and old-age pensions, seven and one-half 

times the basic amount of the invalidity pension; 

2. In the case of widow's pensions and widower's pensions three and one-half 

times, in the case of orphans' pensions three times, the basic amount of the 
invahdity pensions which the one providing the support at the time of liis 
death was receiving or in the case of invalidity would have received. 

Article 1312. 

Paragraph 1, The pension shall be suspended as long as the beneficiary serves a 
prison term of more than one month or is placed in a workhouse or in a refprmator>^ 

Par. 2. If he has relatives in Germany whom he is supporting either wholly or 
principally from his earnings, then the invalidity pension or old-age pension shall be 
transferred to them. 

Article 1313. 

The pension shall be suspended — 

1. As long as the person entitled thereto customarily remains in a foreign country 

of his own free will. 

2. As long as a foreign beneficiary is expelled from the territory of the Empire on 

the basis of condemnation in a penal procedure. The same applies to a 
foreign beneficiary who has been expelled from the territory of a federal State 
because of condemnation in a penal procedure, as long as he does not stay 
in another federal State. 

Article 1314. 

The Federal Council can suspend the stopping of a pension for foreign border terri- 
tories or for such foreign States whose legislation guarantees a corresponding relief 
to Germans or their survivors. 

Article 1315. 

In the meaning of articles 1312 and 1313 German protectorates shall be considered 
as parts of German territory. 

Article 1316. 

In the case mentioned in article 1313, No. 1, a foreign beneficiary is to receive in 
settlement an amount equal to three times, or if the matter relates to an orphan's pen- 
sion an amount equal to one and one-half times, the amount of his annual pension. 

Article 1317. 

With their consent, the same settlements may be granted to those foreigners who — 

1. Except in the cases mentioned in articles 1313, No. 2, have left the territory of 

the Empire on the basis of a decree issued by a German authority. 

2. Are entitled to the receipt of the pension on the basis of a decree issued by the 

Federal Council according to article 1314. 



WOKKMEN^S INSURANCE CODE OF JULY 19, 1911 GERMANY. 695 

Article 1318. 

If the prerequisites complied with entitle anyone to several pensions on the basis 
of the invalidity and survivors' insurance, then the smaller pensions shall be sus- 
pended beginning with the date of the combined right. 

xiii. special powers of the insurance institutes. 

Article 1319. 

If, on new investigation, the insurance institute becomes convinced that pensions 
have been improperly denied, withdi'awn, suspended, or have been determined at 
too small an amount, then the institute can make a new determination. 

Article 1320. 

The insurance institute need not demand the return of the pension sums which it 
has had to pay under the law before a decision of legal force has been made. 

XIV. relation to other claims. 

Article 1321. 

Paragraph 1. Factory funds, seamen's funds, and similar funds can reduce the 
invalidity, old age, and survivors' relief which they give their members insured 
under the imperial laws by not more than the value of the imperial benefits of this kind. 
They must then correspondingly reduce all contributions, or if the employers agree 
thereto at least those of the members of the fund. The same applies to miners' associa- 
tions or miners' funds as regards invalidity and old age relief. 

Par. 2. Benefits provided under the rules of the constitution which the fund had 
granted before the decision of the competent authorities or before January 1, 1891, 
may not be reduced. 

Par. 3. The requisite orders for this purpose are to be introduced by the funds 
through amendments to the constitution; these must be approved by the competent 
authority. The authorities can themselves validly inaugurate amendments if the 
fund declines the application of the employers affected or of a majority of the members. 

Par. 4. The contributions need not be reduced if the savings made in the payment 
of these benefits are either necessary in order to cover the outstanding benefits of the 
fund, or are used according to the constitution and with the approval of the supervisory 
authority for the purpose of the welfare institutions for establishment officials, work- 
men, or their survivors. 

Par. 5. In the case of paragraph 3, sentence 2, the Federal Council shall specify 
the procedure before the imperial supervisory office for private insurance. 

Article 1322. 

Paragraph 1. The benefits which miners' associations or miners' funds grant to 
the survivors of their members insured according to the imperial law shall be reduced 
by one-half of the value of the benefits of the same kind given under imperial law. 
The benefits including the amounts received according to the imperial law must 
exceed by not less than the amount of the imperial subsidy the benefits granted 
according to the constitution without the deduction. Corresponding to the reduction 
of the benefits all of the contributions must be reduced, or if the employers agree 
thereto at least the contributions of the members. In controversies regarding the 
extent of the reduction of the contributions the supervisory authority shall decide. 

Par. 2. The constitution may specify that the benefits and correspondingly the 
contributions may be reduced by a smaller amount or shall not be reduced at all._ 

Par. 3. Benefits under the constitution which have been granted before the decision 
of the competent authorities or before tliis provision enters into force may not be 
reduced. 

Article 1323. 

Article 1281, No. 2, and articles 1321 and 1322 shall also be applicable to such funds 
required to provide invalidity, old age, and survivors' relief for which membership 
is compulsory under local laws. 



696 BULLETIN OF THE EUEEAU OF LABOR. 

Article 1324. 

Pension claims may onl^^ be reduced by deducting from them. the following: 

Claims for reimbursement on account of accident pension and compensation paid 

in so far as the insiu'ance institute has a claim thereon according to article 1522, 

paragraph 3, and article 1542; 
Arrears of contributions; 
Advances paid out; 
Pension amounts paid without right; 
Reimbursement of costs of procedure; 
Fines imposed by the insurance institutes. 

Article 1325. 

Subject to the conditions of article 119, paragraph 2, widows' money and orphans' 
settlements may not be transferred, executed, pledged, or reduced. 

Section Three. — Carriers o? the Ins'urance. 

A, insukance institutes. 

I. EXTERNAL FEATURES. 

1. Estahlishnent. 
Article 1326. 

Paragraph 1. Insurance institutes shall be established for the territory of the 
federal State for the unions of communes or other parts of territorj/ in accordance 
with the provisions of the State governments. 

Par. 2. For several federal States or parts of their territory as well as for their unions 
of communes a common insurance institute may be established. 

Par. 3. Insurance institutes v/hich have been established under the law of June 
22, 1899, shall retain their present status subject to the changes permissible under 
articles 1332 to 1337. 

Article 1327. 

The establishment of the insurance institute shall require the approval of the 
Federal Council, If the council refuses this approval, then after a hearing of the 
State governments affected, it can itself order the establishment of the institute. 

Article 1328. 

The State government shall specify the seat of insurance institute. If the insurance 
institute extends over several federal States, then the State governments affected 
shall specify the seat. 

2. Local competence. 

Article 1329. 

The insurance institute shall include all persons employed in its district (arts. 153 
to 156) who do not comply with their insurance obligation in the special institutes. 
If persons are employed in an establishment whose seat is located in the district of 
another insurance institute, then with the approval of the insurance institute affected 
they may also be insured in the institute of the seat of the establishment. The mem- 
bers of an establishment sick fund must, upon application of the employer, be insured 
at the seat of the establishment. 

Article 1330. 

If an establishment which has its seat in Germany employs temporarily persons in 
a foreign country, these persons must be insured in the insurance institute of the seat 
of the establishment. 

Article 1331. 

Subject to other provisions of the Federal Council, the place of employment, of 
foreign vessels engaged in inland navigation shall be considered to be in theseat of 
that insurance institute in whose district the vessel first enters when crossing the 
boundary. 



workmen's insurance code of JULY 19, 1911 — GEEMANY. 697 

3. Changes in the districts. 
Article 1332. 

Paraghaph 1. The districts of the insurance institute may be changec^. if the com- 
mittee (art. 1351) or a federal State affected applies therefor and the Federal Council 
approves. Before making the decision, the committees and State governments 
affected shall be heard. In the case of insurance institutes for the districts of unions of 
communes, their representatives may also apply for changes and must otherwise be 
heard before changes are made. 

Par. 2. With the approval of the Reichstag insurance institutes may be combined, 
divided, or dissolved. 

-Article 1333. 

The district of the insurance institute changes automatically whenever the district 
of the administration is changed. 

Article 1334. 

If local districts separate themselves from an insurance institute, then the latter shall 
retain then* assets and the existing obligations. 

Article 1335. 

If an insurance institute is dissolved, then the State governments affected may 
transfer to the institutes receiving the same, the assets with all the rights and duties, 
or it may approve the assumption of the same by another institute. * Otherwise the 
assets shall be transferred to the unions of communes or federal States affected, and in 
the case of common institutes shall be divided pro rata. 

Article 1336. 

If in the case ^ of the dissolution of a common insurance institute the unions of 
communes or the federal States can not agree as to the shares of the assets to be turned 
over to them, then the Federal Council shall decide herein or in case only unions of 
communes of one federal State are affected, the highest administrative authority. 

Article 1337. 

In controversies between the insurance institutes in regard to the distribution of 
assets, the decision senate of the Imperial Insurance Office or of the State insurance 
office (art. 1382) shall decide, in the absence of an agreement to secure a decision from 
an arbitration court. 

II. internal features. 

1. Constitution. 

Article 1338. ' ♦ 

The committee shall decide upon the constitution. It must give the seat and 
district of the insurance institute and must specify the following: 

1. Name of the insurance institute; 

2. Number of representatives of the employers a^nd of the insured persons in 

the directorate; 

3. Subjects concerning which the cooperation of the representatives of the 

employers and insiu'ed persons in the directorate is reciuired in discus- 
sion and in decisions; 

4. Number of members, summoning, rights and duties of committees, appoint- 

ment of its chairman, manner of making decisions, as well as representation 
as to third parties in the case of article 1354, paragraph 1, sentence 1; 

5. Form of the declaration of the decisions of the directorate as well as its signa- 

ture on behalf of the insurance institute, manner of making decisions of the 
directorate, and its representation as to third parties; 

6. Representation of the institute as against the directorate; 

7. Size of allowances according to article 21, paragraphs 2 and 3; 

8. Drawing up preliminary estimates; 

9. Drawing up and accepting the annual balance sheet in so far as the higher 

administrative authorities do not provide therefor; 

10. Publication of the accounts; 

11. Method of publishing notices; 

12. Provisions as to the amendment of the constitution. 



698 BULLETIN OF THE BUREAU OF LABOR. 

Article 1339. 

The constitution must have the approval of the Imperial Insurance Office or of the 
State insurance office (art. 1382). If the approval is to be refused, then the decision 
senate shall decide thereon. The reasons for the refusal are to be stated. II the 
approval is refused, then the Federal Council shall decide upon appeal. 

Article 1340. 

If the refusal is finally refused, then within the time specified by the Imperial 
Insurance Office or the State insurance office the committee must decide upon a new 
constitution. If they reach no decision or if the new constitution is likewise not 
approved finally, then the Imperial Insurance Office or the State insurance office shall 
issue a constitution and decree the necessary steps for its execution at the cost of the 
institute. 

Article 1341. 

The constitution may be amended only with the approval of the Imperial Insurance 
Office or the State insurance office. If the approval is to be refused, then the decision 
senate shall decide thereon. The reasons for refusal are to be stated. If the approval 
is refused, the Federal Council shall decide upon appeal. 

2. Directorate. 

Article 1342. 

The directorate shall administer the institute in so far as the law or constitution do 
not provide otherwise. 

Article 1343. 

The directorate shall have the powers of a public authority. One or more officials 
of the union of communes or of the federal State for which the insurance institute has 
been created shall conduct its business. 

Article 1344. 

Paragraph 1. The unions of communes or highest administrative authority shall, 
according to the provisions of the State law, appoint the official members of the 
directorate and shall designate one of them as chairman. 

Par. 2. If the insurance institute extends over several unions of communes, then the 
highest administrative authority or the unions of communes designated by the latter 
shall take this action. 

Par. 3. If the insurance institute extends over several federal States, then the 
highest administrative authorities affected shall decide in regard to the appointment 
of the official members of the directorate. 

Article 1345. 

Article 33 shall not apply as regards the service relations of the official members of 
the directorate (art. 1344). 

Article 1346. 

Paragraph 1. As nonofficial members, there shall belong to the directorate repre- 
sentatives of the employers and of the insured persons in equal numbers. They must 
reside in the district of the insurance institute. 

Par. 2. If the number of official members is greater than the number of nonofficial 
members, then in making the decisions that number of official members shall separate 
themselves as will arrange that the nonofficial members are in a majority. The 
constitution shall regulate the details hereto. 

Article 1347. 

The constitution can provide that still other salaried or unsalaried members shall 
belong to the directorate. The committee shall specify the conditions o" appointment 
of the salaried members. Article 1346, paragraph 2, is here correspondingly applicable. 



WORKMEN S mSUEAl^CE CODE OF JULY 19, 1911 GERMANY. 699 

Article 1348. 

In so far as the office, accounting and subordinate officials employed by the institute 
who are not substitutes are not State or communal officials according to State law, then 
the State government shall confer upon them the rights and duties of State or 
communal officials. 

Article 1349. 

The insurance institute shall provide for the salary, etc., of the officials and sub- 
ordinates as well as their survivors. 

Article 1350. 

The directorate shall publish in the Reichsanzeiger and in the official gazette of the 
highest administrative authority the name, seat, and district of the insurance institute 
as well as the name of the chairman and, in addition, the changes therein. 

3. Committee. 

Article 1351. 

Paragraph 1. Each insurance institute shall have a committee. It shall consist 
of one-half each of representatives of employers and of the insured persons and shall 
comprise at least 10 members. 

Par. 2. The latter shall be elected by the insurance representatives in the local 
insurance offices of the district of the insurance institute, and the representatives of 
the employers and of the insured persons shall be elected in separate elections. 

Par. 3. The representatives must reside in the district of the insurance institute. 

Article 1352. 

Paragraph 1. The highest administrative authority shall issue election regulations 
and shall conduct the election through an authorized representative. If the insurance 
institute extends over several federal States, the highest authorities affected shall 
specify which of them shall conduct the same. 

Par. 2. For each representative at least two substitutes shall be elected. They 
shall take his place if he is unable to fulfill his duties, and, if he leaves the institute, 
they shall fill the office for the rest of the term in the order of their election. 

Par. 3. In controversies over elections, that authority shall decide which is to issue 
election regulations. 

Article 1353. 

The following matters are reserved to the committee: 

1. Election of the nonofficial members of the directorate; 

2. The determination of the preliminary estimates; 

3. The acceptance of the annual balance sheet; 

4. The amendment of the constitution. 

Article 1354. 

Paragraph 1, In purchasing, selling, or mortgaging pieces of ground valued at 
more than 1,000 marks [$238], the institute shall be represented by the directorate and 
by the committee. In so far as matters relate to the purchase at compulsory sales of 
pieces of ground on which the insurance institute has made loans, the directorate alone 
shall be authorized to act as representative. 

Par. 2. The directorate must obtain the consent of the committee to form rein- 
surance federations. 

Article 1355. 

The preliminary estimates must be placed before the supervisory authority at least 
two weeks before the committee decides thereon. It must correct the estimate if it 
violates the law or constitution or endangers the solvency of the insurance institute 
as regards the legal obligation resting upon it. If the committee does not consider the 
objections, then the chairman of the directorate must appeal to the supervisory 
authority (art. 8). He is required to take this action if the supervisory authority 
demands the same. The decision senate decides thereon. 



700 BULLETIN OF THE BUREAU OF LABOE! 

4. Admiinistration of the assets . 
Article 1356. 

Paragraph 1, The insurance institute must invest at least one-fourth of its assets in 
bonds of the Empire or of the federal States. 

Par. 2. The institute may invest not more than one-half of its assets otherv/ise than 
as specified in articles 26 and 27. For this purpose it shall secure the approval of the 
Imperial Insurance Office or of the State insurance ofhce (art. 1382). 

Par. 3. If an insurance institute desires to invest more than one-quarter of its assets 
according to paragraph 2, it shall also secure thereto the approval of the communal 
union or of the highest administrative authority. If the district of the insurance 
institute extends over several States, then the approval of their highest administrative 
authorities is required . 

Par, 4. Such investment (pars. 2 and 3) is permissible only in securities and in other 
ways only for purposes of administration, to avoid the loss of assets or for undertakings 
which exclusively or principally accrue to the welfare of those subject to the insurance. 

Article 1357. 

Approval (art. 1356, pars. 2 and 3) is required in the following cases: 

For the purchase of pieces of ground valued at more than 5,000 marks [$1,190]; 
For the erection of buildings valued at more than 10,000 marks [|2,380]; 
For the purchase of necessary articles of furniture, the total value of which is 
more than 5,000 marks [$1,190], 
Par. 2, Approval is not necessary for the purchase of pieces of ground in the cases 
mentioned in article 1354, paragraph 1, sentence 2. 

Article 1358. 

Paragraph 1, The Imperial Insurance Office shall regulate the method and form 
of the accounting. 

Par. 2. The insurance institutes must make reports to the Im.perial Insurance 
Ofhce in regard to their business and finances according to the order of the latter. 
The Imperial Insrirance Office shall each year draw up a report concerning the 
total financial operations of the preceding fiscal year and must lay the same before 
the Reichstag. 

5. General 'provisions. 
Article 1359, 

Paragraph 1, If the directorate or the committee has not been formed or if they 
refuse to carry on their business, then the chairman of the directorate himself or 
through authorized agents shall conduct the business at the cost of the insurance 
institute. 

Par. 2. In so far as the election of representatives does not take place or if they 
decline to perform their duties, the chairman of the local insurance olhce shall appoint 
them from among the eligible persons. 

B. SPECIAL INSTITUTES. 

1. General 'provisions. 
Article 1369. 

Paragraph 1, Upon application of the competent authority, the Federal Council 
shall specify which institutes of the Empire, of a federal State, or of a union of com- 
munes, shall be admitted as special institutes and the date thereof. 

Par, 2. Upon application the Federal Council may also admit other special in- 
stitutes. 

Par, 3. The special institutes must comply with the conditions specified in articles 
1361 to 1366. 

Article 1361, 

The benefits of the special institutes must be of at least equal value with the legal 
benefits of the insurance institute. 



AVORKMEN's insurance code of JULY 19, 1911 GERMANY. 701 

Article 1362. 

The contributions of the insured persons for the benefits of the imperial law may only 
exceed one-half of the legal amount (art. 1392) if it is necessary through the special 
manner of computation of the special institute in variance with article 1389. They 
may also not be higher than the contributions of the employers. 

Article 1363. 

In the administration of the special institutes insured persons must participate by 
representatives who have been designated in a secret election. Their numiber must 
be not less than that corresponding to the ratio of the contributions of the insured 
persons to those of the employers. 

Article 1364. 

In computing the v^'ailing term and the pension for a claim according to the imperial 
law the period of contributions during membership in other special institutes and 
insurance institutes must be included. 

Article 1365. 

The procedure as regards the claims to invalidity, old age, and survivors' benefits, 
corresponding to the benefits of the imperial law, raust be regulated according to the 
provisions of this law. 

Article 1366. 

If the special institute collects special or increased contributions for the benefits 
of the imperial law, then they may add these to then- other benefits only in so far as 
they add to each pension of the imperial law at least the amount of the imperial subsidy. 

Article 1367. 

Membership in a special fund institution (besondere Kasseneinrichtung) admitted to 
insurance (arts. 8, 10, and 11 of the invalidity insm-ance law), or in a special institute, 
shall be considered as equal to insurance in an insm'ance institute. 

Article 1368. 

The special institutes receive the imperial subsidy to their benefits according to the 
imperial law. 

Article 1369. 

For the pension of a person insured in a special institute, that wage class for each 
week of membership after January 1, 1891, shall be used to which they would have 
belonged on the basis of their actual wages had they belonged to an insurance institute. 
If they were at the same time members of a sick fund or a miner's fund, then the wage 
class shall be arrans-ed according to article 1246, paragraph 2, No. 1 or 3, and article 
1247. 

Article 1370. 

If the special institute does not collect the contributions by means of stamps, then 
for persons leaving, it must certify the duration of their participation and their wage 
class as well as the duration of the periods of military service and sickness (arts. 1393 
and 1394). The Federal Council may specify the form and contents of the certificate. 

Article 1371. 

Persons entitled to insurance in establishments for which a special institute exists 
may insure themselves only in the latter voluntarily, and in the case of leaving the 
employment can continue the insurance only in the special institute (art. 1243). Per- 
sons subject to insurance engagecl in such establishments may, if they leave their 
employment without becoming subject to the insurance elsewhere, extend their 
jiisu'^ance only in the special institute (art. 1244). 



702 BULLETIN OF THE BUEEAU OF LABOR. 

Article 1372. 

In the case of a special institute, the following provisions are correspondingly 
applicable: 

I. Provisions of Book One concerning — 

1. The accounting bureau (art. 103); 

2. Legal remedies (arts. 115 to 117); 

3. Transferring, assigning, and execution of claims (arts. 119). 

4. Time limits (arts. 124 to 134); 

5. Fees and stamp taxes (arts. 137 and 138); 

II. Provisions of Book Four concerning — 

6. Medical treatment (arts. 1296 to 1274); 

7. Withdrawal of the invalidity, widows' and widowers' pensions (arts. 1304 

to 1309); 

8. Suspension of the pension and settlement in form of a capital sum (arts. 

1311 to 1318); 

9. New determination and demand for the return of the pension sums (arts. 

1319 and 1320); 

10. The relations of the claims of persons insured under the imperial law to 

the claims of miners' associations or miners' funds, factory funds, sea- 
men's funds, and similar funds (arts. 1321 and 1322); 

11. Deductions from claims (arts. 1324 and 1325) and transferring, execution, 

■ and assigning of widows' money and orphans' settlements (art. 1325); 

12. Changes in the districts (arts. 1322 to 1337); 

13. Obligation regarding the investment of at least one-fourth of the assets in 

the bonds of the Empire or of the federal States, and the reporting of 
accounting operations to the Imperial Insurance Office (art. 1356, par. 

1, and art. 1358, par. 2); 

14. Payments through the Post Office Department (arts. 1383 to 1386) in so 

far as the special institutes do not make payments directly; 

15. The general cost and the special cost (arts. 1395 to 1399) and reinsurance 

federations (art. 1401); 

16. Distributions and payments of the insurance benefits and the transferring 

of the sums to the post office (arts. 1403 to 1410); 

17. Payment of the contributions for a previous period (arts. 1442 to 1444); 

18. The decision in controversies in the case mentioned in article 1460; 

19. The voluntary additional insurance (arts. 1472 to 1483). 

III. The provisions of Book Five concerning — 

-. 20. The relations of the carriers of the sickness and of the accident insurance 
t© the carriers of the invalidity and survivors' insurance (arts. 1518 to 
1526); .... 
21. The relations to other parties liable to pay benefits in so far as they are 
regulated in articles 1527, 1531, 1536 to 1543. 

Article 1373. 

The Emj)ire or the union of communes affected is liable for the benefits if the 
special institute serves their establishments ; otherwise -the federal State of the seat of 
the establishment is liable. If several federal States participate, then they are liable 
in shares according to the number of insured persons who at the close of the last fiscal 
year were employed in the establishments. In like manner, the liability is regulated 
as concerning the distribution of assets (arts. 1334 to 1336). 

Article 1374. 

Paragraph 1. For the determination of the amount which the special institute 
shall turn over to the general assets^ the contributions shall be decisive (art. 1392). 
The benefits of the special institute shall be distributed only in so far as they cor- 
respond to the provisions of the imperial law. 

Par. 2. The imperial subsidy shall at the close of each fiscal year be paid over to 
the special institutes which make their payments themselves without the intervention 
of the post office. 

2. Special institute of the navigation accident association. 

Article 1375. 

Upon the decision of the Federal Council, the navigation accident association may 
create on its own liability a special institute corresponding to the provisions of the 
imperial law. It must include the persons who are employed in the establishments 



workmen's INSUEANCE code of JULY 19, 1911 GERMANY. 703 

of the association or in single kinds of these establishments and also the undertakers 
who at the same time are subject to the accident insurance and invalidity, and sur- 
vivor's insurance. Both groups are insured in the special institute by authority of 
the law. 

Article 1376. 

If the insured persons are called on for contributions, then they are to participate 
in the administration in the same manner as employers. 

Article 1377. 

The employers' share in the contributions may on the average be not less than 
one-half of the legal contributions (art. 1392). The contributions of the insured per- 
sons may not be higher than those of the employers. 

Article 1378. 

Paragraph 1.' If the contributions of the insured persons are graded, then the 
pensions for the survivors are to be correspondingly graded. 

Par. 2. The waiting term may not be longer than that of the imperial law. 

Article 1379. 

The special institute of the navigation accident association shall have in other 
respects the same status as other special institutes. Articles 1355 to 1358 shall apply 
to it without restriction. It shall be subject to the supervision of the Imperial Insur- 
ance Office. 

Article 1380. 

Paragraph 1. The creation of the special iiLstitute, its constitution, and the amend- 
ment thereof shall require the approval of the Federal Council. It shall make the 
decision after having heard the nonpermanent members of the Imperial Insurance 
Office, elected for the scope of the navigation insurance as representatives of the 
employers and the insured persons. 

Par. 2. The Federal Council shall specify the date on which the institution shall 
come into operation. 

Section Four. — Supervision. 

Article 1381. 

The Imperial Insurance Office shall conduct the supervision of the insurance 
institutes. 

Article 1382. 

If a State insurance office has been created for a federal State, then it shall conduct 
the supervision of the insurance institutes which do not extend beyond its territory. 

Section Five. — Payment op the Benefits — Raising of the Funds. 

I. payment through the post office department. 

Article 1383. 

Paragraph 1. The institute shall make payments upon notification of the direc- 
torate through the Post Office Department and furthermore as a rule through that 
post office in whose district the payee resides. The payee shall be notified of the 
paying office by the directorate. 

Par. 2. If the payee removes his residence, he may make application to the direc- 
torate or to the post office of his old place of residence to have the payments changed 
to his new place of residence. 

Article 1384. 

Every person who is entitled to keep a public seal is authorized to give out and 
attest the requisite certificates in such payments. 

Article 1385. 

The highest postal authorities may collect from each insurance institute an advance 
8um. According to the choice of the insurance institute, it shall be transmitted either 
quarterly or monthly to the offices designated by the Post Office Department and may 
not be greater than that amount which the insurance institute will probably have to 
pay in the current fiscal year. 



704 BULLETIN OF THE BUKEAU OF LABOK. 

Article 1386. 

The Imperial Insurance Office can specify in what manner payments are to be made 
to the payees who customarily reside in a foreign country. 

II. RAISING OF THE FUNDS, 

1. General provisions. 
Article 1387. 

Paragraph 1. The Empire, the employers, and the insured persons shall provide 
the means for the insurance. 

Par. 2. The Empire shall pay subsidies for the pensions, widow's money, and 
orphan's settlements (art. 1285) actually paid in 'each year; the employers and the 
insured persons shall pay for each week of employment subject to insurance (con- 
tributory week) current contributions in equal parts (arts. 1432, 1439, 1458). 

Par. 3. The contributory week begins with Monday. 

2. Size of the contributions. 

Article 1388. 

The weekly contributions shall be determined uniformly in advance by the Federal 
Council at the first for the period up to December 31, 1920, and then afterwards accord- 
ing to the result of the examination (art. 1391) for a further period of 10 years. 
Changes shall require the approval of the Reichstag. 

Article 1389. 

For the determination of the size of the contributions, the annual average con- 
tribution shall be computed for the total number of insured persons. It shall be 
computed in such a manner that the value of all future contributions together with 
the assets shall cover that amount which is required according to the actuarial com- 
putation with the interest and compound interest to defray all future expenditures of 
the insurance institutes. 

Article 1390. 

Paragraph 1, The average contributions shall be graded according to the wage 
classes, otherwise, however, shall be fixed exactly the same in weekly partial amounts 
for the insured persons of the same wage class. 

Par. 2. The grades shall be arranged according to that burden which results from 
the assumption that each wage class has a corresponding insurance status in the total 
number of insured persons and has the same risk, and that for these groups, the pen- 
sions, widow's money, and orphan's settlements will occur in the expected amount 
in the wage classes. 

A-Rticle 1391. 

Paragraph 1. The accounting bureau of the Imperial Insurance Office shall 
investigate in advance whether the contribution will be sufficient. 

Par. 2. Deficits or surpluses must be equalized through new contributions. 

Article 1392. 

Until further action the following shall be collected as weekly contributions: 

Pfetmigs. 

In wage class I 16 [|0. 038' 

In wage class II 24 [ .057^ 

In wage class III 32 [ .076 

In wage class IV 40 [ . 095 

In wage class V 48 [ . 114 



WOBKMEN^S INSUEAITCE CODE OF JULY 19, 1911 — GERMANY. 705 

3. Periods of military service and of sickness. 
Article 1393. 

Paragraph 1. Without any requirement that the contributions^ shall be paid, 
the following shall be added as contributory weeks of Wage Class II in which the 
insured person — ■ 

1. Has been called into service in compliance "Vvith his military duty in times of 

peace, of mobilization, or of war; 

2. Has voluntarily rendered military service in times of mobilization or of war; 

3. Has been prevented from following his occupation because of an illness which 

rendered him incapable of v/ork for the time being; the sickness must be 

certified. 
Par. 2. The;e weeks, however, shall only be included in the computation for those 
persons who were regularly employed in an occupation before that time and were not 
merely temporarily subject to the insurance. 

Article 1394. 

Paragraph 1. The sickness shall not be included which the insured person has 
intentionally brought upon himself or has incurred by an action determined as a 
crime by the verdict of a criminal court or by culpable participation in brawls or 
disorderly conduct. 

Par. 2. If the sickness continues without interraption for more than one year, its 
further duration shall not be included. 

Par. 3. The period of convalesence shall be regarded the sam.e as the sickness. 
The same shall apply for a period of eight weeks in case of inability to work caused by 
pregna,ncy or by regular childbirth without complications. 

4. General cost — Specio,l cost. 

Article 1395. 

The insurance institutes shall independently administer their income and other 
assets (general assets and special assets). They shall cover therefrom the general cost 
which ail carriers of the invalidity and survivors insurance must jointly defray, and 
the special costs which fall upon the individual institutes. 

Article 1396. 

Paragraph 1. The general cost consists of the following: 

The basic amounts of the invalidity pensions and the subsidies for children's 

pensions (art. 1291); 
The shares of the insurance institutes in the old-age pensions, widows' pensions 
and widowers' pensions, orphans' pensions, widows' money and orphans' settle- 
ments. 
The increases of the pensions resulting from the weeks of military serAdce and 

weeks of sickness ; 
The cost of rounding off the pensions upwards. 
Par. 2. All other obligations form, subject to the reservations of article 1478, a 
special cost of the insurance institute. 

Article 1397. 

For covering the general cost, each insurance institute shall, beginning -v^ith Jan- 
uary 1, 1912, set aside in its accounts 50 per cent of the contributions as general assets. 
The in=titutir)n shall credit the interest to the general assets as set aside in the books. 
The Federal Council shall specify the rate of interest on a uniform b-asis for the same 
periods of time as for contributions. 

Article 1398. 

Paragraph 1. If the examination shows (art. 1391) that the general assets are not 
sufficient to cover the general cost, or are not necessary thereto, then the Federal 
Council shall specify for the coming period Avhat shall be the share of th6 contributions 
which is to be set aside on the l^ooks for the balancing of the deficits or surplu-es for 
the general assets. 

Par. 2. If the Federal Council increases this share, then the approval of the Reich- 
stag is required. 



706 BULLETIN OF THE BUKEAU OF LABOK. 

Article 1399, 

The existing assets of the insurance institute on hand at the time of the examination 
may be drawn on to cover the general cost only in so far as they have been set aside 
on the books for the general cost. 

Article 1400. 

Paragraph 1. By joint agreement of the directorate and of the committee, the 
surplus of the special assets over the legal benefits may be applied for the economic 
welfare of the pensioners and the insured persons as well as for their relatives. 

Par. 2. The consent of the Federal Council is necessary in such cases. It may 
revoke the consent, if according to the advice of the accounting bureau, the special 
assets no longer show a sufficiently high surplus. 

5 . Reinsurance federations . 

Article 1401. 

Several insurance institutes may unite in order to carry either wholly or partly the 
burdens of the invalidity and survivors' insurance in common. 

6. Liability for the obligations of the institute. 

Article 1402. 

In so far as the assets of the institute are not sujSicient to cover its liabilities the 
union of communes for which the insurance institute has been created is liable to the 
creditors. If the union of communes is without assets or if the insurance institute 
has been created for a federal State or parts of it, then the latter shall be liable. If 
the institute includes several federal States or unions of communes, then these shall 
be liable according to the number of their population at the time of the last census. 

7. Distribution and refunding of the insurance benefits — Transferring amounts to the 

Post Office Department. 

Article 1403. 

Paragraph 1. The accounting bureau of the Imperial Insurance Office shall ap- 
portion pensions, widows' money, and orphans' settlements upon the Empire, upon 
the general assets, and upon the special assets. 

Par. 2. The increase rates of the invalidity pensions shall be at the cost of the insti- 
tute to which contributions on this account have been paid. If the institute has 
determined benefits, parts of which are a cost on the special assets of other institutes, 
then the latter shall repay to it the amounts in the form of their capitalized value 
at the cloge of the fiscal year. 

Article 1404. 

The accounting bureau shall ascertain for each year and for each insurance institute 
the capitalized value of the pensions still current which it has certified for payment 
and the shares thereof which are a cost upon the Empire, upon the general assets and 
the special assets. The Federal Council shall regulate the computation of the capital- 
ized value. 

Article 1405. 

Within eight weeks after the expiration of each fiscal year, the highest postal author- 
ities shall communicate to the accounting bureau the amounts which have been paid 
in the past fiscal year upon authorization of the insurance institutes. According to the 
standard specified in article 1404, the pension advances shall be distributed upon the 
Empire, upon the general assets and upon the special assets. The accounting office 
shall further compute the share of the Empire, and of the general assets in connection 
with the widows' money and the orphans' settlements. The insurance institutes shall 
participate in the sum which is a charge on the general assets, each institute in pro- 
portion to the share of the total cost specified for its assets. 

Article 1406. 

Paragraph 1. The accounting bureau shall notify the insurance institutes of the 
amounts which they have to repay from the share of their assets intended for the 



WORKMEN ^S INSXJEANCE CODE OF JULY 19^ 1911 GERMANY. 707 

general cost and from their special assets. In such case, the accounting bureau shall 
balance the payments from the post-office advances (art. 1385) with the actual pay- 
ments and shall deduct the capitalized value which according to article 1403 the indi- 
vidual institutes must repay to each other. 

Par. 2. The figures used as a ba.-^is for making the computations shall be stated. An 
appeal to the Imperial Insurance Office is permissible against the apportionment of 
the account. 

Par. 3. The size of the amounts which are a cost to the Empire is to be reported to 
the imperial chancellor. 

Article 1407. 

The accounting bureau shall notify the highest postal authorities what amounts 
must be repaid by the Empire and by the individual insurance institutes. 

Article 1408. 

Within two weeks after the receipt of the notification, the insurance institute must 
pay the amount to the Post Office Department from the means on hand. If such are 
not on hand, then the union of communes or the federal States shall advance the same, 
in case of joint insurance institutes, in proportion to the number of inhabitants at the 
last census. 

Article 1409. 

The amount of the advances to the post office (art. 1385) shall be determined for 
each insurance institute after the receipt of the communication from the highest 
postal authority (art. 1405) by the accounting bureau for the current fiscal year, and 
the insurance institutes and the highest postal authorities shall be notified thereof. 
Up to that time, the partial amounts of the advances to the post office shall be paid 
further, for the time being, in the amount of the preceding year. They shall be bal- 
anced after determination of the new advance to the post office. 

Article 1410. 

If the claims of the Post Office Department are not promptly covered by the insur- 
ance institutes, then upon application of the Post Office Department the Imperial 
Insurance Office or the State insurance office (art. 1382) shall institute compulsory 
collection proceedings. 

Section Six. — Procedure as to Contributions. 

I. stamps. 

Article 1411. 

Paragraph 1. For the purpose of collecting the contributions, each incurance insti- 
tute shall issue stamps containing the designation of the wage class and of the money 
value. 

Par. 2. The Imperial Insurance Office shall specify the distinguishing marks of the 
stamps as well as the periods of time for which they shall be issued. 

Par. 3. It may restrict the period of validity of the issued stamps. ^Vithin two 
years after the expiration of the period of validity, stamps which have become invalid 
may be exchanged at the sales offices. 

Article 1412. 

The stamps of each insurance institute shall -be sold at the post offices of their 
district and at the special sales offices of the insurance institutes, at their face value. 

II. receipt cards. 

Article 1413. 

The contributions shall be paid by affixing the stamps on the receipt card of the in- 
sured person. 

Article 1414, 

The insured person shall have the receipt card made out for him and must produce 
it punctually for the affixing and cancellation of the stamps. The local police 
authorities may require him to do this under penalty of a fine up to 10 marks [$2.38]. 
If he has no receipt card or if he refuses to produce it, then the employer may procure 
the card and deduct the cost thereof at the next wage payment. 



708 BULLETIN OF THE BUREAU OF LABOE. 

Article 1415. 

The insured person may at his own cost at any time demrnd a new card in return 
for the old. 

Article 1416. 

Paragraph 1. The receipt card shall contain the year and day of its issue and the 
contents of the provisions contained in articles 1424, 1425, and 1495. The Federal 
Council shall specify the other matters. 

Par. 2. The Federal Council may prescribe special cards for self-insurance and for 
its continuation (art. 1243), and may impose penalties for the unauthorized use of 
other cards. 

Article 1417. 

The cost of the cards shall be borne by the insurance institute of the district of 
issue if it is not procured for the account of the insured person (arts. 1414 and 1415). 

Article 1418. 

Each card shall contain space for at least 25 weekly stamps. The cards shall be 
numbered successively for each insured person. The first card shall have at its head 
the name of the insurance institute in whose district the insured person is employed 
at the time of its issue, and each following card the name of the preceding (the original 
institute). If the name of the institute on a card issued later differs from that on the 
first card, then the name on the first card shall prevail. 

Article 1419. 

Paragraph 1. The highest administrative authorities shall specify, subject to the 
reservation of article 1456, the offices which shall make out the cards and exchange 
the same (office of issue). 

Par. 2. The imperial chancellor shall specify the office of issue in the German pro- 
tectorates. 

Par. 3. The office of issue shall compute vfhen a card is returned, according to the 
stamps affixed, the contributory \yeeks for the individual wage classes. At the same 
time there must be given the duration of the militar}-^ service proved and of the sick- 
ness certified, which have occurred during the time of the validity of the card. The 
office of issue shall certify to the owner of the card the totals. 

Par. 4. The cost for the forms of the certificates concerning the computation shall 
be borne by the insurance institute of the district of issue. 

Par. 5. The imperial chancellor shall specify who shall bear the cost for the receipt 
cards and for the forms of the certificates in the German protectorates. 

Article 1420. 

The cards must within two years after their date of issue be handed in for exchange. 
If this 13 not done, then in case of controversy the insured person must prove that the 
claim has been kept alive. 

Article 1421. 

Paragraph 1. Receipt cards which have been lost, made unserviceable, or 
destroyed shall be replaced by new cards. 

Par. 2. Contributions which can be proved to have been made shall be transferred in 
certified form; the insurance institute aiiec ted shall be heard in advance if the card 
Vv'hich has become unserviceable is not produced, and in each case shall be notified 
later. 

Article 1422. 

The insured person may appeal to the local insurance office against the contents 
of the certification (art. 1419, par. 3} and against the transfer or the refusal thereof 
(art. 1421, par. 2). The insurance institutes may also protest against the transfer 
(art. 1421, par. 2). The local insurance office shall decide finally. 

Article 1423. 

Paragraph 1. The cards which have been handed in shall be transmitted to the 
insurance institute of the district.. After verifying and correcting the entries on the 
outer side the institute shaU. forward them to the original institute (art. 1418). 



WOKKMEN's INSTJEANCE code of JULY 19, 1911 GERMANY. 709 

Par. 2. The original institute may transfer the contents of all cards of the same in- 
sured persons to a collective card and preserve the latter instead of the single cards. 

Par. 3. The Federal Council shall specify the details herewith. It shall also specify 
when and in what respects receipt cards are to be destroyed. 

Article 1424. 

The cards may contain only the statements j)rescribed by law and may carry no 
special marks; above all the card may not contain anything in regard to the conduct 
or services of the holder. Cards which violate this provision must be retained by 
each authority receiving them and must be replaced by new cards. The contribu- 
tions proved shall be transferred in certified form. The insurance institutes affected 
shall be notified hereof. 

Article 1425. 

Paragraph 1. No one may retain a receipt card against the will of the owner. 
This shall not apply for the competent offices if they retain cards for the purpose 
of exchange, of coiTection, of computation, of transfer, of supervision of the contri- 
butions, or in a collection procedure. 

Par. 2. Whoever retains cards in violation of this provision is responsible to the 
owner for the damages arising therefrom. The local police authority shall collect 
the card and turn it over to the owner entitled thereto. 

iii. payment of contributions through the employer — proof of military serv- 
ice and of sickness. 

Article 1426. ' 

Paragraph 1. The employer who has employed the insured person through the 
contributory week shall pay the contribution for himself and for the insured person. 

Par. 2. If several employers employ the insured person during the week, then 
the first of them shall pay the whole amount. If neither he nor the insured person 
himself has paid the contribution (art. 1439), then the next employer must pay the 
contribution, but can demand reimbursement from the first employer. If the insured 
person is employed in occupations subject to insurance at the same time by several 
employers, then they shall all be liable as joint debtors. 

Article 1427. 

Paragraph 1. If the actual time of work can not be determined, then the contri- 
bution is to be paid for the time which is approximately requisite for the woik. In 
case of controversy, upon application of one party th,e local insurance office shall 
decide finally. 

Par. 2. The insurance institute may, with the approval of the Imperial Insurance 
Office or of the State insurance office (art. 1382), issue special regulations for the 
computation. 

Article 1428. 

Paragraph 1. The employer shall pay the contributions at the time of the wage 
payment b)^ affixing for the duration of the employment, stamps according to the wage 
class of the insured person on the receipt card. The cards shall be issued by the insur- 
ance institute of the place of employment. 

Par. 2. The employer must procure the cards at his own expense. 

Par. 3. If a payment of wages does not take place, the stamps are to be affixed at 
the latest when the employment ceases. 

Article 1429. 

In the case of insured persons who by contract are obliged to work for the employer 
for at least a quarter of a year, the employer may affix the stamps at another time, at 
the latest in the last week of each quarter. In every case the stamps are to be affixed 
at the end of the employment. 

Article 1430. 

The insurance institute may permit the employers to affix the stamps at another 
time. 

18544°— No. 96—12 24 



710 BULLETIN OF THE BUREAU OF LABOR. 

Article 1431, 

The stamps must be canceled. As the date of cancellation, the last day of that 
period shall be given to which the stamp applies. The Federal Council shall specify 
the details in this connection, and shall impose penalties for contraventions. 

Article 1432. 

Paragraph 1. The persons subject to the insm-ance must at the time of payment 
of wages permit the deduction from their cash wages of one-half of the contributions, 
and whoever is insm-ed at a higher amount than the wage class specified in the law, 
without having; agreed with the employer as to the insurance in a higher wage class, 
must also permit the deduction of the excess amount. Only in this way may the em- 
ployers reimburse themselves for the share of the contribution of the insured persons. 

Par. 2. The deductions are to be distributed evenly upon the wage periods. 

Article 1433. 

If deductions are not made at the time of a wage payment, then they may be made 
only at the time of the next payment, unless the employer through no fault of his own 
at a later time pays valid contributions (art. 1442). 

Article 1434. 

Payments on account shall not be considered as wage payments in the meaning of 
articles 1428, 1432, and 1433. In every case, however, the stamps are to be affixed 
in the last week of each quarter. 

Article 1435. 

Paragraph 1. If they pay the contributions in stamps, the employers against whom 
an order of the local insurance office, according to article 398, has been issued may make 
wage deductions only for the period for which they have already paid arrears of con- 
tributions and can prove the same. 

Par. 2. Where a collection procedure is in existence, the order under article 398 
shaH also be applicable for the contributions of the invalidity and survivoi-s' insurance. 
The insured persons must in such cases themselves pay their share of the contribution 
on the pay days. 

Article 1436. 

The Federal Council shall regulate the collection of the contributions for persons 
subject to insurance according to articles 1228 and 1229. 

Article 1437. 

The highest administrative authorities may specify how the share of the contribu- 
tion of persons subject to insurance shall be deducted from their pay if the latter con- 
sists only of payments in kind or Js to be paid by third persons. 

Article 1438. 

Paragraph 1. Military service which has been rendered shall be proved by the 
military papers. 

Par. 2. Weeks of sickness shall be proved by certificates. After the expiration 
of the sick benefits or of the relief during the convalescence the directorate of the sick 
fund, of the substitute fund, of the mutual insurance association, or of the aid sopiety 
created according to provisions of State law shall make out the certificate. Otherwise 
the directorate of the commune shall perform this act. The local insurance office 
may require the directorate of the fund or of the mutual insurance association to ful- 
fill this obligation under penalty of fines up to 100 marks [$23.80]. 

Par. 3. For persons employed in Imperial and State establishments Hie service 
authority in charge may make out the certificates. In such cases the sick fund is to 
be released by the local insurance office from the duty of filling out the certificates. 

IV. payment of the contributions by the insured persons. 

Article 1439. 

Paragraph 1. The insured person himself may also pay the full contributions. 
The employer must reimburse him for one-half thereof, and this shall be one-half of the 
legal contribution, unless an agreement has been made as to insurance in a higher wage 
class. 



WORKMEN ^S IXSUEAXCE CODE OF JULY 19, 1911 GERMAXY. 711 

Par. 2. A claim shall exist only if the stamps have been canceled according to 
regulations. The claim must be raised not later than at the time of the second wage 
payment following, unless the insured person through no fault of his own has paid 
effective contributions at a later time. 

Article 1440. 

Paragraph 1. Subject to the provisions of article 1371, persons voluntarily insured 
ehall make use of the stamps of the insm*ance institute in whose district they are em- 
ployed or in which they remain if unemployed. The choice of the wage class shall be 
made by themselves. 

Par. 2. They may continue the insurance while in a foreign country, and in such 
cases make use of the stamps of any insurance institute which they prefer. 

Par. 3. Stamps of an insurance institute may not be used for the extension of the 
insurance in a special institute (art. 1371). 

Article 1441. 

^Mioever insures himself voluntarily dm'ing an employment for compensation but 
not paid in cash, or in case of a temporary employment (arts. 1227 and 1232), shall have 
a claim to the share of the contribution of the employer. The latter may decline to 
refund more than he is legally required (arts. 1245 to 1247). 

v. contributioxs not valid. 

Article 1442. 

Paragraph 1. Compulsory contributions are not valid if they are paid after the 
expiration of two years, but in case the payment of contributions has not been made 
without the fault of the insured person, then after the expii-ation of four years after the 
date when they are due. 

Par. 2. A fault of the insured f>erson shall not exist if the employer has retained the 
receipt card and has not exchanged it in compliance with the regulations at the proper 
time. 

Article 1443. 

Voluntary contributions and contributions in excess of the legal wage class may not 
be paid for a previous period for more than one year, nor may they be paid after the 
beginning of permanent or of temporary invalidity, or for the continuation of the 
invalidity. 

Article 1444. 

Paragraph 1. If the contributions are later on paid within a suitable time, then 
they shall have the same status as the payment of contributions in the meaning of arti- 
cles 1442 and 1443, in the following cases: 

1. WTien a warning has been given to an employer by the competent office ; 

2. When the employer or the insured person has declared to such an office that 

he is ready to pay arrears. 

Par. 2. There shall not be included in the periods specified in articles 1442 and 1443 
those periods of time in which a controversy regarding contributions (arta. 1459 to 1461 ), 
or a procedure* relating to a claim, to an invalidity pension, old-age pension, widow's 
pension, or widower's pension, is in question. 

Far. 3. These facts (pars. 1 and 2) shall also interrupt the lapsing of arrears of con- 
tributions (art. 29). 

Article 1445. 

Paragraph 1. If the stamps on a receipt card properly made out and handed in for 
exchange at the proper time have been employed according to regulations, then it shall 
be assumed that an insurance status existed during the contributory weeks covered 
thereby. This shall not apply if the stamps have been affixed later than one month 
after the date on which the contributions are due or for the calendar year have been 
affixed in a larger number than the year contains contributory weeks. 

Par. 2. The insured person may demand from the insurance institute the determi- 
nation of the validity of the stamps which have been used. If the insurance institute 
acknowledges the insurance obligation or the right to insurance, then the claim for a 
pension may not be disallov/ed on the ground that the stamps have been used 
without right. 



712 BULLETIN OF THE BUREAU OF LABOR. 

Par. 3. After the expiration of 10 years after the computation of the receipt cards, 
the legal validity of the stamps certified in the computation may no longer be contested , 
unless the insured person or his representatives, or a person required to provide relief 
for him, has brought about the use of the stamps with a fraudulent intent. 

vi. contributions paid in error, 

Article 1446. 

Paragraph 1. Contributions which have been paid under a mistaken assumption 
that an insurance obligation exists, and the return of which has not been demanded, 
shall be considered as paid for self -insurance or continuation of insurance if a right 
thereto existed at the time of payment. 

Par. 2. Within 10 years after their payment, the insured person may demand the 
return of the contributions, if a valid pension has not already been granted to him and 
if the use of the stamps has not been made with fraudulent intent. 

Par. 3. The employer may no longer demand the return of the contributions if the 
value of his share has been returned to him by the insured person or if two years have 
elapsed since the payment. 

VII. collecting the CONTRIBUTIONS. 

Article 1447. 

Paragraph 1. The highest administrative authority may, after a hearing of the in- 
surance institute, order that the sick funds, miners' associations, or miners' funds, or 
other offices designated by it or local collecting offices of the insurance institute, shall 
collect the contributions of all or of separate groups of persons subject to the in- 
surance for the account of the institute. The authority may in such cases regulate the 
duty of the insured person to report himself. 

Par. 2. With the approval of the highest administrative authority, the insurance 
institute may through its constitution itself order this procedure; in addition a com- 
mune or a union of communes, with the approval of the higher administrative 
authority, may after a hearing of the institute order this to be done through a local 
regulation. 

Article 1448. 

If local collecting offices are to be instituted, then the institute must create them at 
their own cost and in the places specified by the higher administrative authority. 

Article 1449. 

The insurance institute must grant a collection fee to the offices of collection* in case 
the parties affected can not agree, the fee shall be fixed by the highest administrative 
authority. 

Article 1450. 

With the approval of the sick fund the hiohest administrative authority can also per- 
mit the collection of the contributions for the sick fund by the local collecting offices. 
The fund shall assume a part of the cost. The details in this connection shall be speci- 
fied by the highest administrative authority after a hearing of the insurance institutes 
and sick funds affected. 

Article 1451. 

The highest administrative authority shall regulate the powers of the insurance in- 
stitute as against the offices of collection not created by itself. 

Article 1452. 

In case of voluntary insiu-ance the collection of the contributions may not be 
prescribed. 

Article 1453. 

Paragraph 1. The highest administrative authority may regulate the details as to 
the procedure in collecting, using, and accounting of the contributions.^ 

Par. 2. As a rule the contributions shall be collected at the same time with those 
of the sick funds on the date when they are due. In the case of insured persons from 



workmen's insurance code of JULY 19, 1911 GERMANY. 713 

whom the sick fund collects no contributions, the office of collection shall specify 
the date. Stamps shall be affixed on the receipt card for the contributions collected. 
Article 1414 is here correspondingly applicable. 

Article 1454. 

Paragraph 1. Even in cases where the procedure of collection has been specified, 
the highest administrative authority or the directorate of the insurance office may 
permit individual employers themselves to pay the contributions by the use of stamps, 
according to articles 1426 to 1430. These authorizations are to be communicated to 
the office of collection. 

Par. 2. Authorities of the Empire, of the States, and of the communes may also 
exclude themselves from the collection procedure. This shall be communicated to 
the insurance institute and the office of collection. 

Article 1455. 

Paragraph 1. The highest administrative authority may order the following: 

1. That sick funds, miners' associations, miners' funds, or local collection offices 

of insurance institutes shall make out and exchange the receipt cards; 

2. That temporary employees (art. 441) shall pay their half of the contribution 

directly, while the other half shall be paid by the union of communes or the 
commune, and that the employer shall repay the same; also the correspond- 
ing application of articles 453 and following may be ordered. 
Par. 2. For this purpose the insurance institute shall grant a special allowance to 
the offices designated, and the highest administrative authority shall fix the amount 
thereof. 

Article 1456. 

Paragraph 1. The procedure of collection may be prescribed for the members of 
a sick fund by its constitution, for the members of the sick fund of an imperial or a 
State establishment by the competent service authorities, and the making out and 
exchange of receipt cards may be transferred to the fund. 

Par. 2. Article 1449 is here not applicable. 

Article 1457. 

Paragraph 1. As long as a person is insured in the district of an office of collection, 
he may deposit his receipt card therein. 

Par. 2. The highest administrative authority, in agreement with the insurance 
institute, may require the deposit. The local insurance office may require the insured 
persons to follow this course under penalty of fine up to 10 marks [$2.38]. 

viii. rounding off the amounts. 

Article 1458. 

If the reckoning between the employer and insured persons results in a fraction 
of a pfennig, then the share of the contribution of the employer shall be rounded off 
to the full pfennig upward and that of the insured person to the full pfennig 
downward . 

ix. controversies as to contributions. 

Article 1459. 

Paragraph 1. In controversies' in regard to the payment of contributions, if such 
controversy is not first raised at the determination of a pension, the local insurance 
office shall decide, and upon appeal the superior insurance office shall decide finally. 
These authorities must follow the principles of the officially published decisions of 
the Imperial Insurance Office. 

Par. 2. If the matter relates to the interpretation of legal provisions of fundamental 
importance which have not yet been passed upon, then the superior insurance office 
shall transmit the matter, together with a statement of the reasons for its own views 
to the Imperial Insurance Office: Provided^ That the appellant has applied therefor 
within the period of appeal. Other persons affected may also make this appeal within 
one week after they have been given an opportunity to express their opinions. In 
these cases the Imperial Insurance Office shall decide instead of the superior insur- 
ance office. 



714 BULLETIIv^ OF THE BUKEAII OF LABOR. 

Article 1460. 

If the controversy relates to the question as to which of several insurance institutes 
is to receive the contributions for specified persons, then upon application the Impe- 
rial Insurance Office or the State insurance office shall decide (art. 1382). 

Article 1461. 

All other controversies between employers and workmen in regard to computation 
and accounting, payment, and reimbursement of contributions (art. 1426, par. 2, arts. 
1432 to 1435, 1437, 1439, and 1441) shall be decided finally by the local insurance 
office. 

Article 1462. 

Paragraph 1, If the controversy has been finally decided, then the local insurance 
office shall take care that contributions not collected in sufficient amounts shall be 
covered through stamps at a later time. If too many stamps have been collected 
and the return of them can still be demanded (art. 1446), the local insurance office 
shall, upon application, secure their return from the insurance institute and repay 
them to the parties affected. The stamps shall be destroyed and the computation 
corrected. 

Par. 2. Stamps which are destroyed because they originated from an insurance 
institute which was not competent must be replaced by those of the competent insti- 
tute. Their amount shall be demanded from the institute of issue and paid over to 
the parties affected. 

Article 1463. 

Instead of destroying the stamps, the local insurance office may call in the receipt 
card and have the valid contributions transferred to a newly made out card. 

Article 1464. 

If the obligation or the right of insurance is finally denied, then, upon their appli- 
cation, the parties affected shall have returned to them the contributions not yet 
lapsed. Article 1446 shall not be affected hereby. 

X. supervision. 

Article 1465. 

The insurance institute shall supervise the punctual and complete payment of the 
contributions. The local insurance office may in this connection assist the insurance 
institute with its agreement and with an understanding as to the costs. 

Article 1466. 

Paragraph 1. The employer must give to the local insurance office and to the 
directorate of the institute itself, as well as to the authorized agents of both, informa- 
tion in regard to the number of employees, their earnings, and duration of their employ- 
ment. The employers must produce the books and lists from which these facts can 
be ascertained, during the time of operation and in their place of business. The 
insured persons also must give information in regard to the place and duration of 
their employment, as well as of their earnings. 

Par. 2. Both groups are obliged to hand over to the designated officials and agents, 
upon demand, their receipt cards and certificates (art. 1419, par. 3) for verification 
and correction, and a receipt must be given therefor. 

Par. 3. The local insurance office may compel the employers and the insured per- 
sons to comply with their duties (pars. 1 and 2), under fines up to 150 marks [$35.70] 

Article 1467. 

With the approval of the Imperial Insurance Office, or of the State insurance office 
(art. 1382), the insurance institute may issue supervisory regulations. These author- 
ities may order the issuance of such regulations, and if such order is not complied 
with, issue the order themselves. The directorate of the institute may require 
employers and insured persons to comply punctually with such regulations, under 
fines up to 150 marks [$35.70]. 



WORKMEN ^S INSX^EANCE CODE OF JULY 19, 1911 GERMANY. 715 

Article 1468. 

Paragraph 1. If cash expenditures occur on account of the supervision, then 
they may be imposed upon the employer if he has caused them through neglect of 
duty. Upon appeal, the superior insurance office shall decide fmally. 

Par. 2. Such costs shall be collected in the same manner as communal taxes. 

Article 1469. 

After agreement with the parties interested, or at the close of a procedure in settle- 
ment of a controversy, the receipt cards shall be corrected by the supervisory author- 
ities, by the duly authorized agents, or by the offices of collection. 

Article 1470. 

With their consent and with an agreement as to the costs, the local insurance office 
may assist the insurance institutes in regard to the supervision of pensioners. The 
decision committee shall make the decision in this connection. If the committee 
declines, then, on appeal, the superior insurance office shall decide finally. 

XI. SPECIAL provisions. 

Article 1471. 

The Federal Council may replace the provisions of this section in regard to the 
crews of foreign ships in inland waters by other provisions. 

Section Seven. — Voluntary Additional Insurance. 
Article 1472. 

Paragraph 1. Every person subject to the insurance and every person entitled to 
insurance may at any time and in any number affix supplementary stamps of any 
insurance institute on their receipt cards. They shall thereby obtain a claim for a 
supplementary pension in case of invalidity. 

Par. 2. The value of the supplementary stamp shall be 1 mark [23.8 cents]. 

Par. 3. The claims procured on the basis of supplementary stamps may not lapse. 

Article 1473. 

Paragraph 1. For every supplementary stamp which the insured person affixes 
he shall receive as an annual supplementary pension as many times 2 pfennigs [0.48 
cents] as at the time of the beginning of the invalidity, years have expired since the 
use of the supplementary stamp. 

Par. 2. The years shall be counted from the calendar year in which the receipt 
card has been counted up to the year in which the invalidity began. The value of 
the supplementary stamps which are not included thereby shall be reimbursed to 
the insured person or to his survivors (art. 1302). 

Article 1474. 

Paragraph 1. The supplementary pension shall be paid as long as the invalidity 
continues (art. 1255). The decision which withdraws the pension shall become 
effective at the expiration of the month following the communication thereof. 

Par. 2. Article 1254 shall also apply to supplementary pensions. 

Article 1475. 

The supplementary pension shall always be paid in full sums monthly in advance, 
each time rounded off upward in sums of 5 pfennigs [1.19 cents], and shall be paid 
either together with the invalidity pension or separately. 

Article 1476. 

Paragraph 1. If the supplementary pension does not amount to more than 60 
marks [$14.28] annually, then upon application a single lump sum payment equal to 
its capitalized value shall be paid. 

Par. 2. If the beneficiaries give up their residence in Germany, then they may be 
paid off with the capitalized value of the supplementaiy pension. 

Par. 3. The computation of the capitalized value shall be regulate<l by the Federal 
Council. 



716 BULLETIN or THE BUREAU OF LABOE. 

Article 1477. 

Articles 1383 to 1386 shall be applicable as regards the payment of the supplementary 
pensions and of the single lump-sum settlements. 

Article 1473. 

Paragraph 1. The receipts from the supplementary stamps shall be added to the 
general assets. The expenditures for supplementary pensions form a part of the 
general cost. 

Par. 2. The general assets shall bear the liability for the obligations arising out of 
supplementary insurance. • 

Article 1479. 

In order to ascertain the obligations which arise out of the supplementary insurance, 
the insurance institute shall draw up special summaries from the incoming receipt 
cards, and these summaries shall show the number and the kind of supplementary 
stamps used and shall serve as the basis for the accounting bureau. 

Article 1480. 

Every 10 years (art. 1388) the accounting bureau of the Imperial Insurance Office 
shall ascertain how high the rate of the pension may be (art. 1473, par. 1). The 
Federal Council shall determine it accordingly for every 10 years. 

Article 1481. 

The benefits for a supplementary pension shall be distributed and paid in the same 
manner as other benefits (arts. 1403 to 1410). 

Article 1482. 

Pajiagraph 1. Each insurance office shall issue supplementary stamps. 

Par. 2. The Imperial Insurance Office shall specify the distinguishing marks of 
the stamps. It may also restrict the duration of their validity. The Federal Council 
shall specify the details in regard to their cancellation. 

Article 1483. 

The regulations which apply for the determination of invalidity and survivors' pen- 
sions shall apply in a corresponding manner in the procedure for the determination of 
supplementary pensions. 

Section Eight. — Final Provisions and Penal Provisions. 

i. sick funds. 

Article* 1484. 

The provisions of this book as regards sick funds (art. 225) shall also be applicable 
to miners' sick funds. 

II. special provisions for SEAMEN. 

Article 1485. 

Seamen (art. 1046, par. 1) are to be insured in that insurance institute in whose 
district is located the home port of the A^essel. 

Article 1486. 

Paragraph 1. The shipowners may pay the contributions for seanaen according to 
the size of the crew of the single vessels as estimated for the accident insurance. The 
insurance institute shall specify the details in this connection. 

Par. 2. The Federal Council may order a different procedure for the payment of 
contributions than that provided in this book. 



WORKMEN ^S IXSURANCE CODE OF JULY 19, 1911 GERMANY. 717 

iii. penal provisions. 

Article 1487. 

If employers make entries in the reports or statements which they have to make 
under the provisions of this law or the regulations of the insurance institute, whose 
incorrectness they knew or under the circumstances must have known, or if they fail 
to make either wholly or in part the prescribed entries, then the directorate of the 
institute may impose upon them fines up to 500 marks [$119]. 

Article 1488. 

Paragraph 1. If the employers neglect to use in due time the correct stamps for 
their employees subject to the insurance or to transmit the contributions, then the 
directorate of the institute may impose upon them fines up to 300 marks [$71.40]. 
Independently of the fine and the collection of the arrears, the directorate may require 
from persons so penalized the additional payment of 100 up to 200 per cent of these 
arrears. The amount shall be collected in the same manner as communal taxes. 

Par. 2. The same shall apply if employers who have in their service foreign-insured 
persons do not comply with their duties as specified in article 1233. 

Par. 3. If the employer contests his obligation to pay contributions, then it shall 
be decided according to article 1459. 

Article 1489. 

Whoever, contrary to his obligations, does not give notice of the employment of 
persons subject to the insurance (art. 1447), may be punished by the local insurance 
office with fines up to 300 marks [$71.40] in case the action has been intentional, and in 
case the action has been one of negligence with fines up to 100 marks [$23.80]. 

Article 1490. 

The following persons shall be punished with fines up to 300 marks [$71.40], or with 
arrest, provided that under other legal provisions more severe penalties are not imposed : 

1. Employers who purposely deduct from the wages of their employees higher 

contributions than this law permits; 

2. Employers who purposely act contrary to the provisions of article 1435, para- 

graph 1; 

3. Employers who make deductions from Avages in the case mentioned in article 

1435, paragraph 2, if the local insurance office has issued an order as described 
in article 398; 

4. Employees who purposely deduct more than this law permits; 

5. Persons who contrary to law AA^thhold a receipt card from one entitled thereto. 

Article 1491. 

Insured persons shall be punished with fines up to 300 marks [$71.40], or with arrest, 
unless severer penalties are provided according to other legal provisions, if they inten- 
tionally demand from employers on account of self-paid contributions more than is 
permissible, or demand the full share of the contribution from several employers for 
the same vv^eek, or do not use the amount collected for the payment of the contribu- 
tions, or collect shares of contributions, when they did not pay the full contributions. 

Article 1492. 

Paragraph 1. Employers shall be punished with confinement in jail if they 
intentionally do not use for the insurance, shares of contributions which they have 
deducted from the wages of their employees or which they have received from the 
latter. 

Par. 2. In addition, penalties up to 3,000 marks [$714] and the loss of civic rights 
can also be imposed. 

Par. 3. If mitigating circumstances are present then the fine alone may be imposed. 

Article 1493. 

The same penal provisions are applicable in the following cases: 

1. To the members of the directorate if the employer is a stock company, a mutual 

insurance association, a registered cooperative society, a guild, or other legal 
person. 

2. To the business directors, if the employe)' is an association with limited liability. 

3. If another type of business corporation is the employer, to all partners person- 

ally liable in so far as they are not excluded from the representation. 



718 BULLETIN OF THE BUREAU OF LABOR. 

4. To the legal representatives of employers not legally competent to transact 
business or partially so, as well as to the liquidators of a business corporation, 
a mutual insurance association, a registered cooperative society, a guild, or 
any other legal person . 

Article 149-1. 

Paragraph 1. The employer may transfer the duties imposed upon him by this 
law or by the constitution to the directors of establishments, the supervisory personnel, 
or other employees of his establishment. 

Par. 2, If such representatives act contrary to those provisions which impose pen- 
alties upon the employer, the penalty shall be imposed upon them. In addition to 
them, the employer is liable to a penalty if — 

1. The contravention has occurred with his knowledge. 

2. He has not observed the care required customarily in the selection and super- 

vision of his representatives. In this case no other penalty than the fine may 
be imposed upon the employer. 
Par. 3. The payment of the additional 100 to 200 per cent of the arrears of contri- 
butions (art. 1488) can also be imposed upon the representative. In addition to him, 
the employer shall be liable for this amount if he is punished under the provisions 
of paragraph 2 above. 

Article 1495. 

Paragraph 1. Whoever places upon a receipt card either forbidden entries or 
special marks may be punished by the local insurance office with fines up to 20 marks 
[14.76]. 

Par. 2. The same penalty may be imposed upon the person who falsely fills out 
the blank spaces ( Vordrueh) on the receipt card or whoever fraudulently alters the 
words or figures entered in filling out the blank spaces or who knowingly uses such 
a card. 

Par. 3. WTioever makes entries, marks, or falsifications, with the intention of 
making known the holder to employers, shall be punished with fines up to 2,000 
marks [$476], or with confinement in jail up to six months. In case of mitigating 
circumstance arrest may be imposed instead of confinement in jail. 

Par. 4. A prosecution for forgery of documents (arts. 267 and 268, of the Imperial 
Penal Code) shall only be inaugurated against persons who have made false entries 
with the purpose of providing for themselves or for others a pecuniary benefit, or with 
the purpose of causing damage to others. 

Article 1496. 

Penalties of imprisonment for not less than three months and in addition loss of 
civic rights shall be imposed upon the one who makes counterfeit stamps or alters 
stamps with the purpose of using them as genuine, or whoever with the same purpose 
provides himself with counterfeit stamps, or uses or offers for sale or brings them 
into use. 

Article 1497. 

The same penalty (art. 1496) shall be imposed upon whoever makes use of stamps 
which have already been used, or procui"es the same for use again, or offers them for 
sale, or brings them into use. In case of mitigating circumstances a fine up to 300 
marks [$71.40] or arrest may be imposed. 

Article 1498. 

In the cases mentioned in articles 1496 and 1497 steps must be taken for the seizing 
of the stamps, even if they do not belong to the person condemned. The same must 
also occur if no specified person can be prosecuted or condemned. 

Article 1499. 

Paragraph 1. WTioever manufactures without the written authority of an insur- 
ance institute or of another authority the stamp, seals, cuts, plates, or other, forms 
which can be used in the manufacture of stamps, or impressions of such forms, or hands 
the same over to persons other than the insurance irstitute or the authorities, shall 
be punished with a fine up to 150 marks [$35.70] or with arrest. 

Par. 2, In addition to the fine or arrest, the seizing of the stamps, seals, cuts, plates, 
or other forms may be ordered, even if they do not belong to the person condemned. 

Article 1500. 

On appeal against the penalties imposed by the directorates of the institutes and 
the local insurance offices the superior insurance office (decision chamber) shall 
decide finally. 



WOKKMEN S INSURANCE CODE OF JULY 19, 1011 GERMANY. 719 

BOOK FIVE.— RELATIONS OF THE INSURANCE CARRIERS TO EACH 

OTHER AND TO OTHER BODIES. 

Section Oxe. — Relations of the Insurance Carriers to Each Other. 

i. sickness insurance and accident insurance. 

Article 1501. 

Paragraph 1. The obligation of the sick funds' (art. 225) to benefits shall not be 
affected because a carrier of the imperial accident insurance is obligated to compen- 
sate damages. 

Par. 2. If according to its obligations under the law or constitution a sick fund 
grants benefits on account of an accident for a period during which the beneficiary 
because of the accident had also a claim for accident compensation or still has such 
claim, then the fund may claim the accident compensation as reimbursement, though 
for not more than the amount of this claim for compensation, and only within the 
limits specified in articles 1502 to 1507. 

Par. 3. The sick fund may claim reimbursement from the funeral benefit and 
accident pension only in so far as this is expressly authorized. 

Article 1502. 

Funeral benefits which the sick fund must pay to a beneficiary under article 203, 
are to be reimbursed from the funeral benefits which the carrier of the accident 
insurance has to pay such person. 

Article 1503. 

Paragraph 1. For sick care three-eighths of that basic wage are to be reimbursed 
on which the jjecuniary sick benefit of the beneficiary is based. 

Par. 2. In case of care in a hospital, the same rule shall be followed as for sick 
care. For maintenance in a hospital one-half of the basic wage shall be used; for this 
amount reimbursement may be claimed only from the accident pension. 

Article 1504. 

In the case of special apparatus, etc., which is to be granted in accordance with arti- 
cle 187, number 3, reimbiu-sement is to be made up to the amount of the expenditure. 

Article 1505. 

For benefits other than funeral benefits, sick care, apparatus, etc. (arts. 1502 to 
1504), reimbursement may be claimed only from the accident pension. 

Article 1506. 

Paragraph 1. In so far as reimbursement for benefits of the sick funds may be 
claimed out of the accident pension, the claim shall be valid only up to one-half of 
the amount of the pension which is paid during the time for which the claims to sick 
benefits and pension coincide. 

Par. 2. If during this time complete maintenance in an institution has been granted 
to the sick person, and according to the provisions of this book reimbursement is to 
be made out of the accident pension, then for the duration of such maintenance a 
claim is valid up to the full amount of the pension. This shall be correspondingly 
applicable if the carrier of the accident insurance has granted complete maintenance 
in an institution to a sick person (art. 607). 

Par. 3. In order to determine the extent of the care in a medical institution which 
the carrier of the accident insurance has granted, on which a claim for reimbursement 
of the sick fund for its benefits is valid, maintenance in a medical institution shall 
be computed as equal in value to the full pension. 

x\rticle 1507. 

For the satisfaction of claims for reimbursement by the sick fund, pension amounts 
in arrears and such amounts for the period of entire maintenance m an institution 
(art. 1506, par. 2, sentence 1), may be drawn on, up to their full amount, other pension 
amounts only up to one-half of their amount. 



720 -BULLETIN OF THE BUKEAU OF LABOR. 

Article 1508. 

Paragraph 1. A claim for reimbursement (arts. 1501 to 1507) is excluded, if it has 
not been filed at the latest within three months after the end of the benefit payments 
with the carrier of the accident insurance. 

Par, 2. If, without any fault on its part, the sick fund has secured knowled,^e of 
the fact only after the expiration of this time, that the prerequisites for a claim for 
reimbursement are present, then it may still file the claim within one week after the 
day on which it secured this information. 

Article 1509. 

The sick fund may enforce the determination of the accident compensation and 
also make use of legal means. The expiration of time limits which has occurred 
without any fault on its jjart shall not act against it; this, however, shall not apply 
for procedure time limits in so far as the sick fund itself enforces the procedure. 

Article 1510. 

If a carrier of the accident insurance in accordance with its duty provides com- 
pensation for a period during which the beneficiary may also make claim for benefits 
from the sick fund either according to law or according to constitution, then the fund 
can deduct from its benefits for this time the accident compensation, in so far as the 
fund in the case mentioned in article 1501 has a claim for reimbursement on account 
of these benefits from the accident compensation. 

Article 1511. 

The constitution of the sick fund may provide that during a sickness which is the 
result of an accident entitled to compensation, for the time during which the accident 
pension or care in a medical institution is provided, a pecuniary sick benefit shall 
only bei provided in so far as it exceeds the amount of the accident pension. In such 
case maintenance in a medical institution shall be computed as equal in value to 
the full pension. 

Article 1512. 

Paragraph 1. The sick fund must report within three days to the carrier of the 
accident insurance every case of sickness which an accident entitled to compensation 
has brought about, as long as there is sufiicient ground for the belief that the loss of 
earning power due to the accident will extend beyond the thirteenth week; if the 
patient after the expiration of three weeks after the accident has not yet recovered, 
then the report must be made not later than the end of the fourth week. 

Par. 2. The employee of the sick fund who conducts its business is required to 
make a report, if the directorate does not authorize another person to do so. The 
report to an accident association which is divided into sections, shall be made to the 
directorate of the section. 

Par. 3. The local insurance ofiice can impose fines up to 20 marks [$4.76] on account 
of failure to make a report. On appeal the superior insurance ofiice shall decide 
finally. 

Article 1513. 

Paragraph 1. In case of sickness caused by an accident, the carrier of the accident 
insurance may take over the course of medical treatment. For the duration of the treat- 
ment or up to the end of the thirteenth week after the accident the insurance carrier 
must grant to the patient the same benefits which the sick fund would have to pro- 
vide under the law or the constitution. In the place of sick care and pecuniary 
benefit, the accident insurance carrier may proAdde hospital care and house money, 
according to articles 184 to 186; with the approval of the patient it may also grant 
care as provided in article 185. 

Par. 2. The sick fund must reimburse the carrier of the accident insurance to the 
extent to which the patient could claim sick relief from it under the law or under 
the constitution and in so far as the carrier of the accident insurance was not itself 
required to make reimbursement. As compensation for the sick care, three-eighths 
of the basic wage shall be used, according to which the pecuniary sick benefit of the 
beneficiary was determined. . 



workmen's INSUEANCE code of JULY 19, 1911 GERMANY. 721 

Article 1514. 

Paragraph 1. The carrier of the accident insurance may transfer to the last sick 
fund of the injured person the fulfillment of its duties to the injured person and his 
relatives even beyond the thirteenth week after the accident until the conclusion of 
the medical treatment to such an extent as it shall deem proper. 

Par. 2. The accident insurance carrier shall reimbiu*se the costs arising therefrom. 
As reimbursement for medical treatment (art. 558, No. 1), and for care in a medical 
institution, the amounts specified in article 1503 shall be used unless a higher expendi- 
tiu-e is proved. In the navigation accident insurance, article 1106, paragraph 2, 
shall be used for this reimbursement. 

Par. 3. Article 1510 shall be applicable as regards the benefits provided by the 
sick fund itself. 

Article 1515. 

Paragraph 1. In controversies between a fund and the carrier of the accident 
insiu-ance- arising. out of the transfer of its benefits (art. 1514), the local insurance 
office shall decide finally, if the matter does not concern a claim for reimbursement. 

Par. 2. Controversies regardino* claims for reimbursement arising out of articles 
1501, 1513, and 1514 shall be decided in judgment procedure. 

Article 1516. 

Paragraph 1. Articles 1512 to 1515 shall also apply for miners' sick funds and sub- 
stitute funds. For the substitute funds, the requirement to give notice shall be regu- 
lated in the constitution. 

Par. 2. For members of miners' sick funds, the basic wage specified according to 
article 180 shall be. applicable, while for members of substitute funds the basic wage 
of their sick fund shall be used. 

Article 1517. 

The highest administrative authority may order that persons injured by accidents 
who are members of sick funds, miners' sick funds, or substitute funds, which are in 
a position to place the injured persons in institutes with adequate medical equipment, 
may be placed in another medical institution before the expiration of 13 weeks after 
the accident only if the directorates of the funds or of the federation of funds approve it. 

II. sickness insurance and invalidity and survivors' insurance. 

Article 1518. 

Paragraph 1. If an insurance institute inaugurates a course of treatment, then for 
the duration thereof it shall grant to the patient the same benefits that his sick fund 
(art. 225) would have to provide under the law or the constitution. If the insurance 
institute places the patient in a hospital or institution for convalescents, then it can 
either wholly or partly refuse to pay him the invalidity or widow's pension for the 
duration of such course of medical treatment. 

Par. 2. The sick fund must reimburse the insurance institute in so far as the patient 
could claim pecuniary sick benefits from the fund according to the law or the con- 
stitution. 

Article 1519. 

Paragraph ]. The insurance institute which inaugurates a course of treatment 
may transfer the care of the patient to his last sick fund to such an extent as it deems 
proper. 

Par. 2. If thereby the fund has imposed upon it expenditures in excess of the 
extent of its legal or constitutional benefits, then the insurance institute must reim- 
burse the costs in excess thereof. 

Par. 3. The institute must also reimburse the fund for its expenditures during the 
time for which the fund is no longer required to pay benefits. In such cases reim- 
bursement for sick care and for hospital care shall be the amounts designated in article 
1503 if higher expenditure is not proved. 

Article 1520. 

Paragraph 1. In controversies between a fund and an insurance institute arising 
out of a transfer of the relief (art. 1519), the local insurance office shall decide finally, 
if the matter does not concern a claim for reimbursement. 



722 BULLETIN OF THE BUREAU OF LABOR. 

Par, 2, Controversies relating to claims for reimbursement arising out of articles 
1518 and 1519 shall be decided in judgment procedure. 

Article 1521. 

Articles 1518 to 1520 shall also apply to miners' sick funds and substitute funds. 
The basic wage shall be specified according to article 1516, paragraph 2. 

iii. accident insurance and invalidity and survivors' insurance. 

Article 1522. 

Paragraph 1. The application to determine a pension for invalidity or to sur\T.vor3 
may not be refused for the reason that the invalidity or the death was the result of an 
accident requiring compensation. The pension is to be paid in full until the accident 
pension is granted. If the latter is granted, then there shall be paid only the amount 
in excess of the invalidity of survivors' pension. 

Par. 2. The same rule shall apply in the case of treatment in a medical institution 
which the carrier of the accident insurance grants. In such case maintenance in a 
medical institution shall be counted as equal to the full pension. 

Par. 3. If the pension is paid for the time for which the beneficiary has a claim to 
an accident pension, then the insurance institute may claim as reimbursement the 
accident pension in so far as the pension which it has granted is not higher. For the 
extent of the claim for reimbursement and for the extent to which the accident pen- 
sio'A may be drawn upon, articles 1506 and 1507 shall be coiTespondingly applicable. 

Article 1523. 

The insurance institute may enforce the determination of the accident pension and 
do so even if, in case of the receipt of the accident pension, the invalidity, old age, or 
survivors' pension has either wholly or partly ceased. Article 1509 is correspondingly 
applicable. 

Article 1524. 

Paragraph 1. If on account of a case of sickness which is the result of an accident 
entitled to compensation, the insurance institute pro\T.des a course of medical treat- 
ment which prevents the beginning of invalidity or removes the invalidity, then the 
carrierof the accident insurance is required to provide reimbursement to the insurance 
institute for the costs of the course of treatment even if the carrier is thereby released 
from a burden. Article 1503 shall be correspondingly applicable for the extent of the 
reimbursement. If no basic wage has been specified, then the actual expenditure is 
to be replaced. The insurance institute may not demand reimbursement for a course 
of treatment during the first 13 weeks after the accident. 

Par. 2. If the insurance institute has provided the course of treatment, then in con- 
nection with the compensation claim of the beneficiary this shall be regarded as equal 
to a corresponding course of treatment provided by the carrier of the accident insurance. 
The carrier of the accident insurance shall be exempted from its obligation of pro- 
viding pensions to the relatives of the beneficiary in so far as the insurance institute 
has paid house money for these persons. If the insurance institute has paid an inva- 
lidity or survivors' pension for the period of the course of treatment, then article 1522 
shall be in so far applicable. 

Article 1525. 

If, on account of a case of sickness which is the result of an accident entitled to 
compensation, the insurance institute has granted a course of treatment which, 
although it has not prevented the beginning of invalidity or removed the same, has 
nevertheless released the carrier of the accident insurance from a burden, then article 
1524 shall be correspondingly applicable. 

Article 1526. 

Controversies in regard to claims for reimbujrsement (art. 1522, par. 3; art. 1524, 
par. 1; and art. 1525) shall be decided in judgment procedure. 



WOEKMEN's INSUEAXCE code of JULY 10, 1911 GERMAXY. 723 

Section Two — Relations of the Insurance Carriers to Other Bodies. 

Article 1527. 

The legal obligations of communes and poor-law unions relating to the relief of 
needy persons and other obligations based on law, constitution, contract, or testa- 
mentary pro\dsion {letztvnlliger Verfilgung) relating to the relief of persons insured 
according to this law and their survivors shall not be affected by the present law. 

Article 1528. 

If a miners' association, a miners' fund, or a substitute fund, pays benefits as required 
because of an accident for a time during which the beneficiary had or still has a claim 
to the imperial accident compensation because of the accident, then the miners' asso- 
ciation or the fund may make claim to the accident compensation as reimbursement 
under corresponding use of article 1501, paragraphs 2 and 3, and of articles 1502 to 
1507, and 1516, paragraph 2. 

Article 1529. 

If the carrier of the accident insurance as required makes compensation for the time 
during which the beneficiary may also claim the benefits of a miners' association, a 
miners' fund, or a substitute fund, then these funds may deduct the accident com- 
pensation from their benefits in so far as they may claim reimbursement in the case 
of article 1528. 

Article 1530. 

Article 1511 shall be correspondingly applicable to miners' sick funds and substitute 
funds. 

Article 1531. 

If the commune or poor-law union, in accordance with its legal obligation, gives 
relief to a needy person for the time during which he had or still has a claim accord- 
ing to this law, then the commune or the poor-law^ union may claim reimbursement 
according to articles 1532 to 1537, but, however, up to only one-half of the amount of 
this claim . 

Article 1532. 

A commune or a poor-law union may claim reimbursement from the benefits of the 
sick fund (art. 225) only if it has granted relief on account of a sickness upon which 
the claim of the person relieved against the fund is based. 

Article 1533. 

The following shall be reimbursed: 

1 . Costs of burial which have been provided at the death of the insured person from 

the funeral benefit; 

2. Relief in case of sickness of the insured person which corresponds to sick care 

and also in case of treatment in a hospital, according to article 1503, from the 
benefits coiTesponding thereto of the sick fund ; 

3. Other relief from the corresponding benefits of the sick fund. In this c?se one- 

half of the basic wa^e shall be used for the maintenance of the person supported 
in a hospital. Articles 1506 and 1507 shall be correspondingly applicable as 
regards the amount of the claim for reimbursement and the extent to which 
deductions may be made from the pecuniary sick benefit and similar benefits 
provided in current payments. 

Article 1534. 

The communes or the poor-law unions may only claim reimbiu'sement from the bene- 
fits of the accident insurance if the relief has been granted because of the results of an 
accident. 

Article 1535. 

The following shall be reimbursed: 

1. Burial costs which have been paid from the funeral benefit; 

2. Relief which corresponds to the sick care which is a duty of the carrier of the 

accident insurance, and also treatment in a hospital, shall be reimbursed 
according to the actual expenditure from the corresponding benefits of the 
carrier; 



724 BULLETIN OF THE BUREAU OF LABOR. 

3. Other relief shall be reimbursed froin the accident pension. Articles 1506 and 
1507 shall be applicable as regards the extent of the claim for reimburse- 
ment and the extent to which deductions may be made from the pension. 

Article 1536. 

For reimbursement from the benefits of the invalidity and survivors' insurance, 
claims may be made only against pensions. Articles 1506 and 1507 shall be corre- 
spondingly applicable as regards the extent of the claim for reimbursement and extent 
to which deductions may be made. 

Article 1537. 

A commune or poor-law union may also claim reimbursement if the needy person 
who had a claim to an invalidity pension or old-age pension or survivors' pension dies 
without having made application for the pension. 

Article 1538. 

Paragraph 1. The funds or communes and poor-law unions (arts. 1528 and 1531) 
entitled to reimbursement may also enforce the determination of the benefits under 
the imperial insurance. Article 1509 is here correspondingly applicable. 

Par. 2. The same shall apply to miners' associations and funds which reduce their 
benefits under the provisions of articles 1321 to 1323. 

Article 1539. 

The claim to reimbursement (arts. 1528 and 1531 to 1537) is excluded if it is not made 
effective against the carrier of the imperial insurance within six months after the cessa- 
tion of the relief. 

Article 1540. 

Controversies relating to claims for reimbursement arising out of articles 1528 and 
1531 to 1537 shall be decided in judgment procedure. 

Article 1541. 

The provisions of this section as regards communes and pcor-law unions shall also 
be applicable as regards undertakers of establishments and funds which instead of such 
bodies grant relief to needy persons according to legal obligation. 

Article 1542. • 

Paragraph 1. In so far as under this law insured persons or their survivors may 
claim reimbursement for damage under other legal provisions, and such damage has 
occurred to them on account of sickness, accident, invalidity, or through the death of 
the one providing support, then such claim shall be transferred to the carriers of the 
insurance in so far as the carriers have to grant benefits under this law to those entitled 
to compensation. This, however, shall apply to those insured against accident and 
their survivors only in so far as it does not relate to a claim against the undertaker or 
those of equal status as specified in article 899. 

Par. 2. Article 1503 shall be correspondingly applicable in regard to the reimburse- 
ment for sick care and hospital care as well as for medical treatment and care in a med- 
ical institution. 

Article 1543. 

Paragraph 1, If a regular court has to pass on such claims (art. 1542), then it shall 
be required to follow the decision which has been issued in a procedm^e according to 
this law, as to whether and to what extent the insurance carrier is obligated. 

Par. 2. Article 901, paragraph 2, shall be correspondingly applicable as regards the 
suspension of the procedure before a regular court. 

Article 1544. 

Articles 1531 to 1533 and 1539 to 1542 shall also be applicable to miners' sick funds 
and substitute funds. Basic wages shall be specified according to article 1516, para- 
graph 2. 



workmen's insurance code of JULY 19, 1911 GERMANY. 725 

BOOK SIX.— PHOCEDURE. 

A. DETERMINATION OF BENEFITS. 

Section One. — Determination by the Insurance Carrier. 

i. inauguration of the procedure. 

Article 1545. 

Paragraph 1. The benefits from the imperial insurance shall be determined as 
follows : 

1. In the field of the accident insurance, on the initiative of the officials; 

2. In other cases, on application. 

Par. 2. The determination shall be by expedited procedure. 

Article 1546. 

Paragraph 1. If the accident compensation has not been determined on the 
initiative of the officials, the claim shall be fi.led with the insurance carrier at the 
latest within two years after the accident, otherwise the claim will not be considered. 

Par. 2. For the survivors of an insured person who has sailed on a ship which went 
down or is not accounted for, the tim.e limit shall be reckoned from the date on which 
according to article 1099 the claim to a survivor's pension has come in existence. 

Article 1547. 

Paragraph 1. After the expiration- of the time limit the claim may still be made 
effective if — 

1. A new result of the accident, which justifies a claim to compensation, has only 

later become perceptible, or if a result which occurred during the time limit 
has become perceptible to a considerably greater extent only after the ex- 
piration of the time limit, even though it is a gradual and regular develop- 
ment of the ailment; 

2. If the beneficiary has been prevented from presenting the claim by circum- 

stances beyond his control. 
Par. 2. In these cases the claim shall be presented within three months after the 
new result of the accident or the considerable change for the worse has become per- 
ceptible, or the hindrance to making the claim has been removed. 

Article 1548. 

Paragraph 1. If the injured person dies as a result of the accident, the claim to 
compensation of the survivors, if it has not been determined on the initiative of the 
officials, shall be presented to the insurance carrier at the latest within two years after 
the death of the insured person, otherwise the claim will not be considered. 

Par. 2. After the expiration of the time limit the claim may still be brought forward 
if the prerequisites mentioned in article 1547, paragraph 1, No. 1, are present and the 
claim has been presented within three months after the removal of the hindrance. 

Article 1549. 

Paragraph 1. The time limits (arts. 1546 to 1548) shall also be considered as 
observed if the claim has been presented in proper time to a carrier of the accident 
insurance which is not competent or to a local insurance office. 

Par. 2. The filing of the claim shall be reported to the competent authorities with- 
out delay; the party affected shall be notified thereof. 

* Article 1550. 

If cases in which voluntary benefits of the insurance carrier would seem called for 
come to the notice of the local insurance office, the latter shall bring them to the 
knowledge of the insurance carrier. 

18544°— No. 96—12 25 



726 BULLETIN OF THE BUEEAU OF LABOE. 

ii. sickness insurance. 

Article 1551. 

Paragraph 1. Applications for benefits of the sickness insurance shall be sub- 
mitted to the sick fund or to the party otherwise liable. 

Par. 2. As benefits of the sickness insurance are also considered — 

The benefits of sick funds, miners' sick funds, and substitute funds, according- to 

articles 573 and 1083; 
The benefits of undertakers, employers, and carriers of the other relief according 

to articles 577, 1084, and 1085; 
The benefits of the communes and of the sick funds, according to articles 942 to 

944, article 1087, paragraph 2, article 1088, paragraph 2, and article 1089; 
The benefits of the carriers of the accident insurance in case of medical treatment 

in the instances specified in articles 580, 946, and 1092; 
The benefits paid by the sick funds, miners' sick funds, substitute funds, com- 
munes, and the undertaker to the carriers of the accident insurance, according 
to articles 583, 948, and 1094; 
The benefits of the sick funds, miners' sick funds, and substitute funds, on the 
transfer of the relief by carriers of the invalidity and survivors' insurance, 
according to articles 1519 and 1521, in so far as it does not concern invalidity 
or survivors' pensions; 
The benefits of the undertakers, of communes, and sick funds, if the navigation 
accident association has according to article 1106, or the branch institute has 
according to article 1091, transferred to them the relief for the first 13 weeks. 
Par. 3. Further are considered as benefits of the sickness insurance the benefits 
of the carriers of the accident insurance and of the carriers of the invalidity and sur- 
vivors' insurance if they assume in the cases of articles 579, 600, 945, 1086, 1090, 1104, 
1513, 1516, 1518, and 1521 the benefits from the parties liable specified in paragraph 2. 
Par. 4. This is applicable to the previously designated cases of articles 1083 to 1086, 
1092, 1094, 1104, and 1106, only in so .far as article 1770 does not provide otherwise for 
seamen. 

III. accident insurance. 

1. Re'ports of accidents. 

Article 1552. 

Paragraph 1. The undertaker of an establishment shall report each accident in 
his establishment if a person employed in the establishment is killed as a result of 
the accident or is injured in such a manner that he dies or becomes wholly or partially 
disabled for more than three days. 

Par. 2. The accident shall be reported within three days after it has come to the 
notice of the undertaker of the establishment. 

Article 1553. 

Paragraph 1. The report shall be made either in writing or orally both to the local 
police authority of the place of the accident and to the office of the insurance carrier 
specified in the constitution. 

Par. 2. If the accident occurs while on a journey, it may also be reported to the 
German local police authority in whose district the injured person first resides after 
the accident. 

Par. 3. If the accident occurs in a foreign country and there is no authority which 
is competent in Germany according to paragraph 2, it shall be reported to the local 
police authority of the seat of the establishment in Germany. 

Article 1554. 

The manager of the establishment or part of the establishment in which the accident 
occurred may make the reports in the place of the. undertaker of the establishment. 
He is obliged to do so if the undertaker is absent or prevented from so doing. 

Article 1555. 

The Imperial Insurance Office shall specify the forms for accident reports. 



WOEKMEX'S INSUKANCE CODE OF JULY 19, 1911 GERMANY. 727 



Article 1556. 

Paragraph 1. If the accident has not been reported or was reported at too late a 
date, the directorate of the accident association may fine the person obliged to make 
the report not more than 300 marks [$71.40]. 

Par. 2. The same also is applicable in the case of article 913, paragraph 1, and the 
corresponding provisions for agricultural accident insurance (art. 1045). Article 913, 
paragraphs 2 and 3, articles 1045 and 1223, are here correspondingly applicable. 

Par. 3. On appeal the superior insurance office (decision chamber) decides finally. 

Article 1557. 

The directorates of establishments administered by the Empire or a federal State 
shall make the report to their superior authority in the service according to the latter's 
detailed instructions. 

Article 1558. 

The provisions relating to the reporting of accidents are correspondingly ap})licable 
to accidents in the case of an insured activity which does not belong to an insured 
establishment. 

2. Investigation of accidents. 

Article 1559. 

Paragraph 1. If an insured person has been killed, or injured in such a manner 
that presumably he will have to be compensated according to this law, the local police 
authorities of the place of the accident shall as soon as possible inA' estigate the accident. 

Par. 2. The local police authority shall also investigate the accident if a party liable 
to pay benefits according to this law makes application therefor. 

Par. 3. The beneficiary may m.ake application to the local insurance office for an 
investigation of the accident. The latter may request the local police authority to 
comply with the request. 

Article 1560. 

Paragraph 1. Accidents occurring on a jom-ney or in a foreign country shall be 
investigated by the local police authority to which they have been reported. 

Par. 2. On application of a person affected the superior administrative authority 
may, according to article 1562, transfer the investigation to another local police 
authority. 

Article 1561. 

In the case of establishments administered by the Emph-e or a federal State, the 
superior service authority shall specify who shall investigate the accident. 

Article 1562. 

The following parties may take part in the investigation or be represented in it: 
The injured person or his survivors; 
The carrier of the accident and the sickness insm'ance; 
The undertaker of the establishment; 
The local insm'ance office; 

The State industrial inspectors, in the case of accidents in establishments sub- 
ject to industrial inspection (art. 139b of the Industrial Code). 

Article 1563. 

Paragraph 1. These parties affected shall be notified in due time of the date of the 
investigation. 

Par. 2. If the accident association is divided into sections, or if it has appointed 
district agents ( Vertrauensmdnner) , the directorate of the section or the district agent 
shall be notified. 

Par. 3. Other persons who may l^e affected shall be called in to the investioation. 

Par. 4. The injured person or his survivors may also call in to the proceedings as 
assistants, adult relatives or other suitable persona who do not appear before the au- 
thorities as a business. 



728 BULLETIN OF THE BUREAU OF LABOR. 

Article 1564. 

Paragraph 1. The local police authority shall determine the state of affairs. They 
may make any kind of inquiry with the exception of examination under oath. 

Par. 2. On application of the insurance carrier or of the beneficiary, experts shall 
be called in; the costs shall be paid by the applicant. 

Par. 3. If the service rooms of an authority or a vessel of the imperial navy is to 
be inspected, permission must be requested of the competent service authorities or 
of the officer in command. 

Article 1565. 

The investigation shall especially ascertain — 

The cause, time, place, circumstances, and natm^e of the accident; 

The name of the person killed or injured, as well as the date and place of his buth; 

The nature of the injury; 

The whereabouts of the injured person; 

The survivors of the person killed, and the relatives of the injured person, who 

could claim compensation according to this law; 
The amount of the benefits and pensions which the injured person is receiving from 

the imperial insm-ance. 

Article 1566. 

The Imperial Insurance Office may decree particular provisions regarding the 
written record of the investigation proceedings. 

Article 1567. 

Paragraph 1. As soon as the investigation is terminated the local police authority 
shall transmit a record of the proceedings to the insm^ance carrier. 

Par. 2. The parties affected may demand permission to inspect the record of the 
proceedings and a copy of it. 

Par. 3. Copying fees may be collected for the copy. 

3. Decisions of insurance carriers. 

A. GENERAL PROVISIONS. 

Article 1568. 

The benefits of the accident insurance shall be determined — • . . . 

1. By the directorate of the section, if the accident association is divided into 

sections: Provided, That the matters to be settled deal with — 

a. the medical treatment (art. 558, par. 1), or house care (art. 599), 

b. the pension for the duration of a presumably temporary disability, 

c. the treatment in a medical institution, 

d. the pension for relatives, 

e. the funeral benefit; 

2. In all other cases by the directorate of the association. 

Article 1569, 

The constitution of the accident association may transfer the determination — 

1, In the cases of article 1568, No. 1 — 

To the directorate of the association, 

To a committee of the directorate of the association or section, 

To special commissions. 

To local representatives (district agents) ; 

2. In the cases of article 1568, No. 2 — 

To the dii'ectorate of the section, 

To a committee of the directorate of the association or section, 

To special commissions. 

Article 1570. 

The administrative provisions shall designate the authorities which determine the 
benefits, if another carrier of the accident insurance takes the place of the accident 
association. 



WOEKMEN^S INSUEANCE CODE OF JULY 19, 1911 GEEMANY. 729 

Article 1571. 

PARAGRAPH 1. If the insurance carrier deems the matter not suJSiciently clear, it 
shall, with reservation of article 1572, make further investigations. 

Par. 2. WTiere %vitnesses or experts in the com-se of legal aid are to be examined 
under oath the local insurance office shall be requested to do so. If the production 
of evidence before the local insurance office encounters considerable difficulties, 
esj^ecially on account of the great distance of the residence of witnesses from the 
seat of the local insurance office, or if there is risk in delay, the lowest comi; (Amtsge- 
richt) may also be requested to act. 

Par. 3. The insurance carrier may apply for the sworn examination of a witness 
or expert, only if it deems it necessary to have them sworn in so as to obtain a true 
deposition. 

Par. 4. If the application for a production of evidence has been refused by the 
lowest court (Amtsgericht) the superior State court {Oberlandesgerickt) decides finally. 

Article 1572. 

Paragraph 1. On application of the insui-ance carrier the president of the local 
insurance office must examine the whole matter and express an opinion thereon. 
He shall decide at his own discretion what investigations are necessary. 

Par. 2. Articles 1637 to 1639 are correspondingly applicable to the competence of the 
local insurance office. 

Article 1573. 

The parties affected shall be given an opportunity to participate in the examination 
of witnesses or experts. 

Article 1574. 

Paragraph 1. The provisions of the Code of Civil Procedure {Zivilprozessordnung) 
relating to the obligation to appear as witness or expert, to submit to examination, 
and the taking of an oath, are correspondingly applicable to the procedure before the 
judge applied to. The deposition shall not be refused because this law establishes 
the obligation of secrecy. 

Par. 2. The judge applied to decides if the deposition or the taking of the oath may 
be refused. An appeal against this decision to the next higher court is permissible 
within one week according to the provisions of the Code of Civil Procedm-e. 

Article 1575. 

The provisions of article 1574 are also applicable to the procedure before the local 
insurance office in so far as articles 1576 to 1579 do not prescribe otherwise. 

Article 1576. 

If application has been made to the local insurance office for the examination of 
witnesses or experts, the same decides whether the deposition or the taking of the oath 
may be refused. Against its decision an appeal is permissible within one week to the 
superior insurance office. The superior insurance office (decision chamber) decides 
finally. 

Article 1577. 

Paragraph 1. Witnesses or experts may be fined not to exceed 300 marks [$71.40], 
only if — • 

They do not put in an appearance; 

They refuse their deposition or the taking of the oath without giving a reason, or 
after the reason given has been declared legally irrelevant. 
Par. 2. The local insurance office imposes the fine. Article 1576, sentences 2 and 3, 
is applicable to the appeal. 

Article 1578. 

Paragraph 1 . Military persons belonging to the active service in the army or navy 
or to one of the colonial forces, shall on application be summoned as witnesses or 
experts by the military authority. 

Par. 2. If they refuse to give testimony or to take the oath, the military court shall 
impose the fine on application. 



730 ' BULLETIN OF THE BUEEAU OF LABOE. 

Article 1579. 

Paragraph 1. The witnesses and experts shall receive fees as in examinations b«fore 
the ordinary court in civil legal disputes. 

Par, 2. On appeal against the determination of the fees, the superior insurance 
office decides finally. 

Article 1580. 

Paragraph 1. If the undertaker refuses to permit the insurance carrier to make 
an inspection, the local insurance office decides whether and in what manner the 
inspection shall take place. 

Par. 2. The local insurance office may itself make the inspection and use thereby 
the assistance of the local police authority, or apply for it to the local police authority. 

Par. 3. The appeal effects a stay. 

Par. 4. Article 1564, paragraph 3, is applicable to the inspection in the service 
rooms of an authority or in a vessel of the imperial navy. 

Par. 5. The highest administrative authority shall specify how far paragraphs 1 to 
3 are applicable to establishments subject to mine inspection. 

Article 1581. 

Paragraph 1, The undertaker shall on demand report within one week to the asso- 
ciation the earnings which serve as basis in the computation of the compensation. He 
shall for this purpose make current entries in regard to the earnings paid to the indi- 
vidual insured persons. The constitution determines particulars hereto. 

Par. 2. If the undertaker does not report the earnings, he may be fined not to 
exceed 300 marks [$71.40]. If the report contains statements the incorrectness of 
which the undertaker has known, or must have known under the circumstances, he 
may be fined not to exceed 500 marks [$119]. 

Par. 3. The directorate of the association imposes the fine. On appeal the supe- 
rior insurance office decides finally. 

Par. 4. These provisions are also applicable to persons designated in articles 912, 
913, paragraph 1, and article 1220, and in the corresponding provisions for the agri- 
cultural and navigation accident insurance (arts. 1045 and 1222). Article 913, para- 
graphs 2 and 3, 1045, and 1223, are correspondingly applicable. 

Article 1582. 

Paragraph 1. If on the basis of a medical opinion, the compensation is refused or 
only a partial pension is granted, the attending physician shall first be heard, unless 
he has already submitted an adequate opinion. 

Par. 2. If the attending physician has a contract relation to the insurance carrier, 

which is not merely a temporary relation, another physician shall, on application, be 

called in. 

b. decision. 

Article 1583. 

Paragraph 1. The office competent for the determination (arts. 1568 to 1570) shall 
communicate a written decision if — 

1. A compensation is to be granted or refused; 

2. A pension on account of change of conditions (arts. 608, 955, and 1115) is to 

be determined anew ; 
8. The matters to be settled deal with — 

medical treatment (art. 558, number 1), or house care (art. 599), 
treatment in a medical institution or pension for relatives, 
determination of the benefits after the termination of hospital treatment, 
funeral benefit, 

discontinuance of an accident pension on account of suspension of the pension, 

settlement with a beneficiary in the form of a capital sum. 

Par. 2. In the decision which fixes a settlement in the form of a capital sum, the 

attention of the beneficiary must be called to the fact that after the settlement he has 

no longer any claim to a pension, even if the consequences of the accident should 



become aggravated. 



Article 1584. 



If the injured person on account of a change of conditions claims an increase in a 
pension or the regranting of a pension, he must submit his claim to the insurance car- 



WOEKMEn's insurance code of JULY 19, 1911 GEEMANY. 731 

rier or to the local insurance office. The local insurance office shall without delay 
transmit it to the insurance carrier, and notify the latter of the date of the receipt of 
the claim. 

Article 1585. 

Paragraph 1. If the pension of an injured person can not yet be fixed as a perma- 
nent pension, as regards its amount, the insurance carrier is authorized, during the 
first two years after the accident, to determine provisionally a compensation and to 
change the same in accordance witii a change of conditions. In the decision it shall 
be stated that the matter concerns only a provisional pension. The superior insm-- 
ance office and the Imperial Insurance Office (or the State insurance office) have 
within the same time limit the right to determine a provisional compensation, in so 
far as they award a compensation after the insurance carrier has refused the compen- 
sation. If the injured person on account of a change in condition claims an increase 
in a provisional pension, article 1584 shall be applicable. 

Par. 2. The permanent pension shall be determined at the latest on the expiration 
of two years after the accident. This determinationcloes not assume a change of con- 
ditions; likewise the previous determination of the fundamental facts for the compu- 
tation of the pension is not binding for it. 

Article 1586. 

If, after the expiration of three months, the insurance carrier can not yet communi- 
cate a decision, it shall by an ordinary letter inform the beneficiaiy of the reasons. 
The time limit shall begin with the date on which the insurance carrier has officially 
learned of the accident, or in the case the death occurs later, of the death. In the 
case of the survivors of an insured person who has sailed on a vessel which went down 
or is not accounted for, the time limit shall be reckoned from the date on which accord- 
ing to article 1099 the claim to a pension has arisen. 

Article 1587. 

Paragraph 1. If, at the beginning of the liability to compensation, the amount of 
the compensation can not yet be decided on, the insurance carrier shall grant an 
advance on the compensation and notify the beneficiary by an ordinary letter of this 
fact. 

Par. 2. In the case of injured persons who, after the expiration of the 13 weeks after 
the accident, must continue to receive medical treatment, to heal the injuries, at least 
that compensation shall be determined, which is to be granted until the termination 
of the medical treatment. 

Article 1588. 

If compensation has been granted, the communication of the decision shall show its 
amount and the method of computation. In the case of compensation to injured per- 
sons, what degree of disability has been assumed shall be specifically stated. 

Article 1589. 

The grounds for the decision shall be stated and it shall be signed. The signature 
of the president is sufficient. 

Article 1590. 

The decision must contain the statement that it shall come into force unless the 
beneficiary appeals in due time; the decision shall state the time limit for the appeal 
and refer to the rights mentioned in articles 1592, 1595, and 1596. 

- C. PROTEST. 

Article 1591. 

Paragraph 1. A protest may be made against the decision. The protest shall be 
submitted in writing to the insurance carrier within one month after the receipt of the 
decision. Article 129, paragraphs 2 and 3, is here correspondingly applicable. 

Par. 2. Article 128, paragraph 2, is correspondingly applicable in the case of sea- 
men sojourning outside of Europe. 

Par. 3. Minors who have completed their sixteenth year of age may make a protest 
on their own accord. 



732 BULLETIN OF THE BUEEAU OF LABOR. 

Article 1592. 

Paragraph 1. The submission in due time of the protest establishes the right of 
the beneficiary to a personal hearing. The office which is competent for the issuing 
of the decision determines whether the beneficiary shall be examined before it or 
before the local insurance office. ^ Articles 1637 to 1639 are correspondingly applicable 
to the competence of the local insurance office. As long as the beneficiary has not 
been examined before the competent office, he may demand that he shall be exam- 
ined before the local insurance office, in the district of which he is living or employed 
at the time of the examination. If the beneficiary is examined before the adminis- 
trative body of the association, he shall be recompensed for his cash expenditures and 
his loss of time. On appeal against the determination of the costs the superior insur- 
ance office decides finally. 

Par. 2. The preliminary proceedings shall be submitted to the office which must 
examine the beneficiary. 

Article 1593. 

Paragraph 1. The beneficiary who has submitted the protest shall be summoned. 

Par. 2. If he does not put in an appearance at the time fixed without giving ade- 
quate reasons for his absence, the records of the proceedings shall be returned imme- 
diately to the offi-ce competent for the decision, together with a statement concerning 
the same. 

Article 1594. 

If the person summoned puts in an appearance, his depositions shall be recorded in- 
writing. In such case the ofl[ice which is competent for the examination must secure 
statements of the facts necessary for the determination and of the evidence which are 
as accurate and as complete as the circumstances permit. 

Article 1595. 

Paragraph 1. If a physician, whom the insured person of his own choice has 
selected for his treatment, has not already been heard by the insurance carrier, the 
local insurance office shall, on application of the insured person to be made at the 
time of his examination, consult the opinion of a physician who has not been heard 
until then, if according to the judgment of the local insurance office his opinion may be 
of importance for the decision. 

Par. 2. If the physician requested by the local insurance office to give his opinion 
declines to do so, the local insurance office decides whether and from which other 
physician such an opinion shall be secured. 

Article 1596. 

Paragraph 1. In any. case on demand of the insured person, if he pays the costs in 
advance, a physician designated by him must be heard as expert. If these costs can 
not be determined in advance, the local insurance ofiice may request a lump sum as 
security for them. 

Par. 2. If, on a final determination made on the basis of the new opinion, a pension 
has been granted which was refused in the decision, or the partial pension determined 
in the decision has been increased, the costs shall be refunded to the beneficiary as far 
as is appropriate. In case of dispute regarding the refund the superior insurance 
office on appeal decides finally. 

Article 1597. 

The local insurance office decides how far the existing medical opinions shall be 
communicated to the new expert (arts. 1595 and 1596); on demand he shall be allowed 
to inspect the other preliminary proceedings. ~ 

Article 1598. 

If the examination takes place before the local insurance office, it may also express 
its opinion regarding the matter. It may, for this purpose, make investigations as far 
as the evidence is at hand or easily acquired and no considerable expenses are caused. 

Article 1599. 

The proceedings relating to the protest, together with the preliminary proceedings, 
shall be transmitted to the officials competent for the determination without delay. 



WORKMEN S INSURANCE CODE OF JULY 19, 1911 — GERMANY. 733 

D. SPECIAL PROVISIONS FOR THE PROTEST AGAINST CHANGES IN PERMANENT PENSIONS. 

Article 1600. 

If a permanent pension must be determined anew (arts. 608, 955, and 1115), on 
account of a change of conditions, then articles 1591 to, 1599 a-'e applicable, in so far 
as articles 1601 to 1605 do not provide otherwise. 

Article 1601. 

The examination of the beneficiary takes place before the local insurance office. 
The preliminary proceedings shall be submitted to the local insurance office. 

Article 1602. 

After the termination of the investigation, the matter shall be discussed in oral 
proceedings befoce the local insurance office with the participation of a representative 
of the employers and of a representative of the insured persons. The proceedings are 
not public. 

Article 1603. 

The president of the local insurance office determines the order in which the repre- 
sentatives shall be called into the proceedings. The superior insurance offi.ce may 
decree general provisions in this connection. 

Article 1604. 

Paragraph 1. The examination of the beneficiary (art. 1594) and the investigations 
(art. 1598, sentence 2) may be combined with the oral proceedings if such action 
seems advisable. 

Par. 2. The association may have a district agent (arts. 678, No. 3, arts. 973 and 
1144) or a member of another administrative body act as its representative; the 
beneficiary may also call into the proceedings as assistants either adult relatives or 
other proper persons. The representatives of the association and the assistants of the 
beneficiary must not consist of persons who appear before the authorities as a business. 

Article 1605. 

Paragraph 1. The local insurance office shall submit an opinion regarding the 
matter. The opinion shall discuss everything which according to the judgment of the 
local insurance office is of importance for the decision of the insurance carrier. 

Par. 2. If the opinion is not based on the concurrence of the president of the local 
insurance office and the insurance representatives, the dissenting opinions shall be 
recorded. 

E. FINAL DECISION. 

Article 1606. 

Paragraph 1. After the receipt of the proceedings on the protest, or after being 
informed of the nonappearance of the beneficiary at the time set for the proceedings, 
the office competent for the determination according to articles 1568 to 1570 shall 
collect the proof which may still be necessary and then issue its final decision. 

Par. 2. If th^ protest has been submitted too late, it shall be refused as inadmissible 
by the office designated in paragraph 1 by a final decision. 

Article 1607. 

Paragraph 1. Articles 1588 and 1589 are applicable to the final decision. 

Par. 2. The beneficiary shall on application be given a copy of the opinion of the 
local insm-ance office fi'oe of charge. On application he shall also be given copies of 
the records of the examination of witnesses and experts and also of the medical opin- 
ions ; the costs sliall be paid by the applicant in advance. All copies shall be furnished 
only in so far as this seems permissible with proper consideration of the beneficiaries. 
On appeal the superior insurance office decides finally. 

Par. 3. The final decision must contain the statement that it becomes valid unless 
the beneficiary subm.its the appeal to the superior insurance office within one month 
after the receipt of the decision. 

Par. 4. Article 128, paragraph 2, is correspondingly applicable to seamen sojourning 
outside of Europe. 



734 BULLETIN OF THE BUREAU OF LABOR. 

F. OTHER PROVISIONS. 

Article 1608. 

Paragraph 1. If an insurance carrier, before the former decision relating to the 
amount of the compensation has become valid, makes a new decision, by which the 
pension on account of a change of condition has been determined anew, the protest and 
the legal steps against the former decision are also considered as a protest and as legal 
steps against the new decision. 

Par. 2. A copy of the new decision shall be transmitted to the office with which the 
older dispute is pending. This office can take up the procedure on the new decision, 
and on the decision of the older matter decide what compensation is to be granted for 
the period after the issuing of the new decision. 

Article 1609. 

In so far as the highest administrative authority has made use of the powers men- 
tioned in article 112, the administrative bodies there specified shall take the place of 
the local insurance office as regards the latter's duties in the procedure of protest. 

Article 1610. 

If an accident compensation for such injured persons or their survivors who reside 
in a foreign country is to be granted, refused, or on account of change of conditions 
determined anew, a final decision can be given at once without any previous decision 
or protest. 

Article 1611. 

The Imperial Insurance Office may specify the ^particulars in regard to the certifica- 
tion of decisions relating to the fixing of compensation as well as in regard to the signing 
and making out of decisions and final decisions. 

Article 1612. 

The local insurance office notifies the insurance carrier if it learns that — 

An assumption of the medical treatment by the insurance carrier before the 

expiration of the waiting term, or a transfer of the medical treatment by the 

insurance carrier to the sick fund after the expiration of the waiting term is 

called for; _ 

An accident pension shall be determined anew or withdrawn on account of a 

change in condition; 
A pension shall be suspended. 

IV. invalidity and survivors' insurance. 

1. Submission of claims . 

Article 1613. 

Applications for benefits of the invalidity and survivors' insurance shall be directed 
to the local insurance office; documents used as evidence shall be inclosed. 

Article 1614. • 

Articles 1637 to 1640 are applicable to the competency of the local insurance office. 

Article 1615. 

Paragraph 1. If payment of a widow's pension is claimed, the amount of which 
has been determined, then the local insurance office of the place in which the widow 
at the time of the application for payment resides or is employed v^ the competent 
office; articles 1639 and 1640 are here correspondingly applicable. 

Par. 2. If the prerequisite for the receipt of an orphan's settlement is only com- 
plied with after the death of the insured person, the competence is regulated by the 
place of residence of the orphans. 

Article 1616. 

The highest administrative authority may decree that the claims may also be sub- 
mitted to other authorities with the effect of articles 1256 and 1263. These authorities 
shall transmit the claims to the competent local insurance office without delay. 



WORKMEN ^S INSTJEANCE CODE OF JULY 19, 1911 GERMANY. 735 

2. Preparation of the case by the local insurance office. 

Article 1617. 

Paragraph 1. The president of the local insurance office ascertains according to 
his own judgment what is necessary for the elucidation of the facts; article 1652 is 
here coiTespondingly applicable. 

Par. 2. The inquiries shall cover all questions which are of importance for the 
decision of the insurance carrier, especially the following: 

The insurance obligation or to the right to insure voluntarily; 
The invalidity and the date of its beginning; 
The age of the orphans; 

The indigence, where a widow's pension or, in the cases of articles 1260 to 1262, 

an orphan's pension is concerned. 

Par. 3. On application of the beneficiary the opinion of a physician named by him 

shall be asked if the opinion, in the Judgment of the local insurance office, may be of 

importance for the decision; the beneficiary shall pay the costs in advance. Other- 

^se articles 1595, paragraph 2, 1596, and 1597 are correspondingly applicable. 

Article 1618. 

After the termination of the inquii'ies by the president the matter shall, in so far as 
article 1624 does not provide otherwise, be discussed before the local insurance office 
in oral proceedings, with the attendance of a representative of the employers and a 
representative of the insured persons. 

Article 1619. 

The provisions of articles 1652 and 1655 are correspondingly applicable to the 
preparation of the oral proceedings. In particular, the president can order before 
the oral proceedings, the examination of the applicant and the expression of an opinion 
as to his health by a physician, and also requii'e the personal appearance of the appli- 
cant at the oral proceedings. 

Article 1620. 

Article 1603 is correspondingly applicable to the order in which the insurance 
representatives shall be called into the proceedings. 

Article 1621. 

Articles 1641 to 1649 are correspondingly applicable in regard to the disqualifica- 
tion and the refusal to serve both of the president of the local insurance office and of 
the insurance representatives. 

Article 1622. 

Paragraph 1. The oral proceedings are not public. 

Par. 2. Otherwise articles 1662 to 1665, 1667, 1669, and 1672 are correspondingly 
applicable to the oral proceedings, but article 1654 shall not be applicable. 

Article 1623. 

Paragraph 1. The local insurance office shall submit an expression of opinion in 
the matter; the expression of opinion shall include everything which, according to the 
judgment of the local insurance office, is of importance for the decision of the insurance 
carrier. 

Par. 2. If on account of a crime or intentional misdemeanor (art. 1254) or other 
violation (arts. 1272 and 1306) the claim may be wholly or partially disallowed or 
withdrawn, then an opinion shall also be expressed as to the point regarding the 
extent to which use shall be made of this right. 

Par. 3. Where the opinion is not based on the concurrence of the president of the 
local insurance office and the insurance representatives the dissenting opinions, 
together with a statement of the reasons, shall be recorded. 



736 BULLETIN OF THE BUREAU OF LABOE. 

Article 1624. 

Paragraph 1. An oral proceeding does not take place if the matters to be settled 
deal with — 

Old age pensions; 
Orphans' pensions; 

Widov/s' money (Witivengeld) and orphans' settlement (Waisenaussteuer); 
Settlement in the form of a capital sum (arts. 1316, 1317, and 1476); 
Cases in which the insurance carrier and the beneficiary are in accord. 
Par. 2. The imperial decree (art. 35, par. 2) may specify other cases in which no 
oral proceedings take place. 

Par. 3. If an oral proceeding does not take place, then the president of the local 
insurance office shall submit the expression of opinion. 

Article 1625. 

The president of the local insurance office transmits the proceedings and the opinion 
to the insurance carrier (art. 1630). 

Article 1626. 

Paragraph 1. Articles 1617 to 1625 are correspondingly applicable if an invalidity, 
survivors', or supplementary pension is to be withdrawn or if a pension is to be 
discontinued. 

Par. 2. Articles 1637 to 1640 are correspondingly applicable to the competence of 
the local insm'ance office. 

Par. 3. An oral proceeding does not take place if the matter to be dealt with con- 
cerns the suspension of a pension (arts. 1311 to 1315, and 1318). 

Article 1627. 

The highest administrative authority can specify the procedure for the preparation 
of the matter and the expression of an opinion by the local insurance office, in so far 
as it is not regulated by imperial decree (art. 35, par. 2). 

Article 1628. 

Paragraph 1, Articles 1617 to 1627 are correspondingly applicable if the prepara- 
tion and expression of an opinion on the matter is transferred to administrative bodies 
of miners' associations, miners' funds, or special institutes for establishments of the 
Empire or of the federal States. 

Par. 2. Article 1571, paragraphs 2 to 4, and articles 1573 to 1579 are correspondingly 
applicable if witnesses or experts are to be examined under oath. 

Article 1629. 

The local insurance office shall notify the insurance carrier if it learns that — 

An insured person or a widow can be protected from invalidity by a course of 
treatment; 

The beneficiary of an invalidity, widows', widowers', or supplementary pension 
can have his earning power restored by a course of treatment; 

The invalidity, widows', widowers', or supplementary pension should be with- 
drawn; 

A pension should be suspended. 

3. Decision of the insurance carriers. 
Article 1630. 

Paragraph 1. The benefits of the invalidity and survivors' insurance shall be 
determined by the directorate of the insurance institute. 

Par. 2. The insurance institute for the district of the local insurance office through 
which the claim is to be filed is the competent one. 

Article 1631. 

Paragraph 1. A written decision shall be communicated if the claim filed has been 
recognized or disallowed. It shall contain the reasons therefor and be signed. The 
signature of the president is sufficient. Article 1611 is applicable to the certification 
of decisions relating to the determination of benefits and the making out of the 
decisions. 



workmen's insurance code of JULY 19, 1911 GERMANY. 737 

Par. 2. If the claim is disallowed the beneficiary shall, on application, receive a 
copy of the opinion of the local insurance office tree of charge. He shall, on applica- 
tion, also receive copies of the records of the examination of witnesses and experts and 
also of the medical opinions; the costs shall be paid by the applicant in advance. All 
copies shall be furnished only in so far as this is permissible with due consideration of 
the beneficiary. On appeal the superior insurance office decides finally. 

Par. 3. If a pension is granted, the decision shall state its amount, the time of its 
beginning, and the method of its computation. 

Par. 4. The decision must contain the statement that it becomes valid unless the 
beneficiary, within one month after the receipt of the decision, files an appeal with the 
superior insurance office. Article 128, paragraph 2, is applicable to seamen sojourning 
outside of Europe. 

Article 1632. 

If the insurance carrier is not willing to comply with the opinion expressed by the 
president of the local insurance office regarding the granting of a pension, then the 
matter shall be returned to the local insurance office for discussion and expression of 
opinion (art. 1623) if the matter to be settled deals with the insurance obligation, 
the right to insure voluntarily, or the invalidity. 

Article 1633. 

Articles 1630 to 1632 are correspondingly applicable if a pension is to be withdrawn 
or stopped. 

Article 1634. 

Paragraph 1. On application of the local insurance office the insurance carrier 
may charge to a party affected by the decision any costs which he has caused by mal- 
ice, obstruction, or deceit. 

Par. 2. These costs shall accrue to the treasury of the insurance carrier. 

4 . Reneiva I of ajyp lications . 
Article 1635. 

Paragraph 1. If an application for an invalidity pension or for the payment of the 
widows' pension has been definitely refused, because permanent invalidity could not 
be proved, or if an invalidity or widows' pension has been withdrawn with legal effect, 
because the invalidity existed no longer, then the application may only be repeated 
one year after the delivery of the decision, and sooner only if it is authentically certi- 
fied that in the meantime circumstances have arisen which furnish proof of the 
invalidity. 

Par. 2. If the -certification is not produced, then the local insurance office shall 
refuse the application as being repeated prematurely. The decision is not contestable. 

Section Two. — Determination by Judgment Procedure. 

• I. procedure before the local insurance office. 

1 . Competence of the local insurance office. 

Article 1636. 

In disputes as to the benefits of the sickness insurance the local insurance office 
(judgment committee), with reservation of article 1661, on application decides in the 
first instance. 

Article 1637. 

That local insurance office is the competent one in whose district at the time of the 
application the insured person is residing or is employed. 

Article 1638. 

Paragraph 1. If the insured person has no place of residence or employment in 
Germany, or if he is dead, or his whereabouts are unknown, his last place of residence 
or employment in Germany shall be decisive. 

Par. 2. If there is no such place, then the seat of the establishment shall be decisive 
in which the insured person is employed or was last employed. 



738 BULLETIN OF THE BUREAU OF LABOR. 

Article 1639. 

If, according to articles 1637 and 1638, several local insurance offices are competent, 
preference shall be given to the one which was first approached. 

Article 1640. 

Paragraph 1. If the local insurance office believes that another office is competent, 
it shall transmit the matter to the latter. 

Par. 2. If the latter office also believes it is not competent, then the decision rests 
with the president of that superior insurance office to which both offices are subordinate; 
or if there is no such office, with the Imperial Insurance Office (or the State insurance 
office). 

Par. 3. The decision is final and binding for the lower instances. 

f . Disqualification and rejection of members of the judgment committee. 
^ Article 1641. 

The following are disqualified from participation in the judgment committee: 

1 . Whoever is himself one of the parties to the matter ; 

2. Whoever is liable for reimbursement to one of the partie's; 

3. Whoever is or has been married to one of the parties; 

4. Whoever is related in direct line or related by marriage, or related in collateral 

line in the s^ond or thii'd degree, or related by marriage in the third degree 
to one of the parties ; 

5. Whoever v/as summoned in the matter as an authorized agent or assistant of one 

of the parties, or is entitled to act as his legal representative, or has been so 
entitled ; 

6. Whoever has been examined in the matter as a witness or expert; 

7. Whoever has participated in the decision as to the benefit as a member of an 

administrative body of the insurance carrier. 

Article 1642. 

If the president of the local insurance office is at the same time president of an 
administrative body of the insurance carrier, then he shall also be excluded from par- 
ticipation in the judgment committee in such matters of this insurance carrier in which 
he was not active formerly. 

Article 1643. 

Paragraph 1. Members of the judgment committee m.ay be rejected for reasons 
which justify their disqualification as well as on account of prejudice. The rejection 
on account of prejudice is justified if facts are submitted which may warrant dis- 
trust as to the member's impartiality. 

Par. 2. No member may be rejected as prejudiced if the party knew the reason of 
disqualification before, but brings it forward only after the party has entered into a 
proceeding before the judgment committee. • 

Article 1644. 

The president of the local insurance office shall not be excluded from participation 
in the judgment committee because he was officially active in the matter in the prelim- 
inary proceedings; he shall .also not be rejected as prejudiced for this reason. 

Article 1645. 

Paragraph 1. The grounds for the rejection must be reasonable. 
Par. 2. If the party, after having entered into a proceeding, declines to accept a 
member of the judgment committee as being prejudiced, he must show that the 
grounds for the rejection have arisen only at a later time or have only later been 
ascertained by him. 

Article 1646. 

If the acceptance of a representative of the insurance is declined, the president 
decides. If the acceptance of the president is declined, the superior insurance office 
decides finally. No decision is necessary if the person whose acceptance was declined 
considers the application for rejection as justified. 



WOEKMEX'S INSUEANCE CODE OF JULY 19, 1911 GERMANY. 739 



Article 1647. 

Paragraph 1. The decision which considers the application as justified is final. 
Par. 2. The decision of the president v/hich rejects the application may not be con- 
tested by itself alone, but only together \vdth the decision on the main matter. 

Article 1648. 

Article 1646 is also applicable if a member of the judgment committee himself 
announces a fact which could justify the declination to accept him, or if doubts arise 
on the question whether he is disqualified by a legal reason. 

Article 1649. 

If after the disqualification of members or declination to accept members an insur- 
ance authority becomes incapable of making a decision, then the next higher judg- 
ment authority shall determine which other authority of equal rank shall decide the 
matter. 

3. Procedure uj) to the oral proceedings. 

Article 1650. 

Paragraph 1. The application described in article 1636 shall be made at the com- 
petent local insurance office (arts. 1637 to 1640). 

Par. 2. Article 129, paragraphs 2 and 3, is correspondingly applicable to the appli- 
cation at other authorities. 

Par. 3. Minors who have completed ^:he sixteenth year of their age can make for 
themselves application independently and prosecute it independently. 

Article 1651. 

The application for a decision of the local insurance office effects a stay, if the matter 
in question deals with a settlement in the form of a capital sum (arts. 217 and 218). 
The settlement can only be confirmed or annulled by judgment procedure. 

Article 1652. 

Paragraph 1 . The president prepares the matter and may collect evidence before 
the oral proceedings begin. 

Par. 2. According to his own judgment he can make personal inspections, examine 
witnesses and experts, also under oath procure opinions from physicians and all kinds 
of official information, and may also call in other insurance carriers. 

Par. 3. Witnesses and experts shall only be sworn in if the president deems this 
necessary in order to obtain a true deposition. Article 1571, paragraphs 2 to 4; arti- 
cles 1573, 1574, paragraph 1; articles 1575, 1577 to 1579, and 1580, paragraphs 2 to 5, 
are here correspondingly applicable; the president decides whether the deposition or 
taking of the oath may be refused. Within one week an appeal to the superior in- 
surance office against his decision is permissible. The superior insurance office 
(decision chamber) decides finally. 

Article 1653. 

Paragraph 1. The contents and on demand a copy of the proceedings concern- 
ing the evidence shall be communicated to the parties affected. 

Par. 2. The president decides in how far medical certificates and opinions shall 
be communicated , The judgment committee may make the communication later on. 

Article 1654, 

Paragraph 1. If the claim depends on a status of family or hereditary rights, 
the president may direct the parties affected to have the status determined by the 
regular courts. 

Par. 2. At the same time he specifies up to which date the suit must be filed; on 
application the time limit may be extended. 

Article 1655. 

Paragraph 1. The president specifies the time of the proceedings and notifies the 
parties thereof. 

Par. 2. The president may summon witnesses and experts to the oral proceedings 
and give other orders, especially as to the personal appearance of the applicant. 



740 BULLETIN OF THE BUEEAU OF LABOR. 

Article 1656. 

Article 1603 is correspondingly applicable to the order in which the insurance rep- 
resentatives shall be called in to the proceedings. 

Article 1657. 

The president may give a preliminary decision in all matters without oral pro- 
ceedings. 

Article 1658. 

Paragraph 1. Against the preliminary decision, that legal remedy jnay be inter- 
posed which would be admissible against the decision, or application may be made 
within the same time limit for oral proceedings. The preliminary decision shall call 
attention thereto with a statement of the time limit. 

Par. 2. Minors, who have completed their sixteenth year of age, can make appli- 
cation for oral proceedings independently. 

Par. 3. If the application for oral proceedings was made too late, it shall be refused 
as inadmissible. 

Article 1659. 

Paragraph 1. If use has been made of both legal remedies, then the oral pro- 
ceedings shall take place. 

Par. 2. In regard to the legal remedies and the resumption of the proceedings, the 
preliminary decision is considered equal to a decision if no application has been 
made for oral proceedings. 

4. Oral proceedings. 
Article 1660. 

Paragraph 1. The proceedings before the judgment committee shall be conducted 
orally and publicly. 

Par. 2. Publicity may be forbidden for reasons of public welfare and morality; the 
decision shall be made public. 

Article 1661. 

In public oral proceedings on benefits of the sickness insurance the president alone 
decides if the matters to be settled deal with — 

1. Solely the computation of the determination of the duration and amount of 

the sick benefit; 

2. The granting of hospital care in the place of the sick benefit; 

3. The funeral benefit; 

4. Benefits the total amount of which is less than 50 marks [$11.90.] 

Article 1662. 

The applicant may either appear himself or may have himself represented; the 
insurance carrier may also have itself represented. The parties and the representa- 
tives of the parties who appesir shall be given a hearing. 

Article 1663. 

Paragraph 1. The local insurance office may exclude authorized representatives 
and assistants who make a business of appearing before authorities. 

Par. 2. This is not applicable to lawyers and such persons who are permitted to 
appear before courts (art. 157 of the Civil Code), nor to such persons who are admitted 
as legal representatives before local and superior insurance offices and do so as a 
business. 

Par. 3. The superior insurance office decides on the admission, the highest admin- 
istrative authority on appeal. 

Par. 4. The admission may be refused only if an important reason exists; it may 
not be refused for reasons based on the religious or political activity of the applicant. 

Article 1664. 

Paragraph 1. The provisions of the law on the constitution of the courts (Genchts- 
verfassungsgesetz) relating to the maintenance of order in the session (arts. 176 to 182, 
and 184) are correspondingly applicable. 

Par. 2. The superior insurance office decides finally on appeals against penalties 
for acts of disorder. 



WOEKMEX'S INSURANCE CODE OF JULY 19, 1911 GERMANY. 741 

• Article 1665. 

Paragraph 1. If the judgment committee does not deem the matter sufficiently 
elucidated, it shall decide on the necessary proof. The president may be charged 
with the execution of the decision. * 

Par. 2. Articles 1652, paragraphs 2 and 3, and 1653, shall be correSpondinglj^ appli- 
cable for the production of evidence; and article 1654 for the subsequent order to have 
a legal status determined by the ordinarj^ law procedure. 

Article 1666. 

The dispute is considered as settled if the parties come to an agreement as to the 
disputed claim and costs which may have arisen. 

Article 1667. 

Paragraph 1. The judgment committee decides according to a majority of votes. 

Par. 2. If no majority can be obtained in the voting on the amount of benefits, 
then the votes cast for the larger amount shall be added to those cast for the next 
smaller one until a majority results. 

Article 1668. 

Paragraph 1. If the judgment committee holds that the claim is established, it 
shall at the same time determine the amount and the time when the benefit begins. 

Par. 2. If, as an exception, the claim has been allowed because of the reasons 
stated, then a provisional benefit shall be decreed and its amount determined. The 
determination of the provisional benefit is final; the provisional payments shall be 
charged against the claim. 

Article 1669. 

Paragraph 1. If by order of the president the applicant has appeared at the oral 
proceedings, then, on demand, he shall be reimbursed for his cash expenditures and 
loss of time; they may be refunded if he has appeared without any order and the judg- 
ment committee deems the appearance necessary. 

Par. 2. On appeal against the decree which determines or disallows the compensa- 
tion, the superior insurance office decides finalh- . 

Par. 3. If the applicant has appeared without an order, the reimbursement is con- 
sidered as disallowed unless the judgment committee explicitly decides that the 
appearance was necessary. Na appeal takes place in this case. 

Article 1670. 

Paragraph 1. At the proceedings shall be examined on the initiative of the offi- 
cials whether and to what extent the party who lost the ca«e shall refund the costs of 
his opponent. 

Par. 2. The amount of these costs shall be determined in the decision. 

Par. 3. On application of the party^ they shall be collected through the instru- 
mentality of the local insurance office in like manner as communal taxes. 

Article 1671. 

Paragraph 1. The decision of the judgment committee shall be made public even 
if publicity in the proceedings was forbidden. 

Par. 2. It shall contain the reason, be signed by the president, copies made out, 
and delivered to the parties. 

Article 1672. 

A written record shall be made of the oral proceedings. 

Article 1673. 

Paragraph 1. Errors in writing or in the computation and similar evident mis- 
takes which exist in the decision shall always on application or on the initiative of 
the officials be corrected. 

Par. 2. The president shall decide without oral proceedings whether corrections 
shall be made. 

18544°— No. 9j6— 12— 26 



742 BULLETIN or THE BUKEAU OF LABOR. 

Par. 3. If he makes a correction, the authorization shall be noted on the ariginal 
of the decision and on the copies. The party affected may appeal against the decree 
to the superior insurance office; the superior insurance office decides finally. 

Par. 4. The decree which refuses a correction may not be contestecl. 

Article 1674. 

Paragraph 1. If the decision has wholly or partly omitted a principal or secondary 
claim submitted by a party, or the matter of costs* on application it shall be supple- 
mented later. 

Par. 2. Such application may be decided without oral proceedings, if the matters 
to be settled deal with a secondary claim or a matter of costs. 

Par. 3. The supplementary decision shall be noted on the original of the decision 
and the copies. 

ii. procedure before the superior insurance office. 

Article 1675. 

Against final decisions of the carriers of the accident insurance, also against decisions 
of carriers of the invalidity and survivors' insurance, and likewise against judgments 
of the local insurance office, the legal remedy of the appeal to the superior insurance 
office (judgment chamber) is permissible. 

Article 1676. 

On the appeal in matters of the sickness insurance, the superior insurance office 
decides for the district of that local insurance office which has issued the contested 
decision or the president of which has issued the contested preliminary decision. 

Article 1677. 

Paragraph 1. On the appeal in matters of the accident insurance that superior 
insurance office decides in whose district the insured person at the time of the filing 
of the appeal was residing or was employed. Articles 1638 to 1640 are here corre- 
spondingly applicable. 

Par. 2. In matters of the navigation accident insurance the home port of the 
vessel, or the seat of the establishment in which the accident occurred, regulates the 
competence of the superior insurance office. If the home port is not situated in the 
district of a superior insurance office, the appeal shall be filed at the superior insurance 
office which is competent for the seat of the naA-igation accident association. 

Article 1678. 

Paragraph 1. On the appeal in matters of the invalidity and survivors' insiu-ance, 
the superior insurance office for the district of that local insurance office, decides 
which according to articles 1617 to 1627, has participated in the preparation of the 
matter. 

Par. 2. If the preparation and expression of an opinion on the matter has been 
transferred to administrative bodies of miners' associations, miners' funds, or to special 
institutes for establishments of the Empire or of federal States, then that superior 
insurance office is the competent one in the district of which the seat of these admin- 
istrative bodies is located. 

Article 1679. 

Paragraph 1. The provisions for the judicial procedure before the local insurance 
office are correspondingly applicable to the procedure in the case of appeals, in so far 
as articles 1680 to 1693 do not provide otherwise. 

Par. 2. Article 1581 is correspondingly applicable to the obligation of reporting 
the earnings. 

Article 1680. 

In matters of sickness insurance the appeal shall be filed with the local insurance 
office. The local insurance office shall, not later than two weeks afterward, submit it, 
together with the preliminary proceedings, to the superior insurance office. 



WORKMEN ^S INSUKAI!TCE CODE OF JULY 19, 1911 GERMANY. 743 

Article 1681. 

If the insured person or liis sinnivors make application to hear the opinion of a 
specified physician, the superior insurance office, if it desires to grant the application, 
may make the hearing dependent on the condition that the applicant shall advance 
the costs and finally defray them unless the superior insurance office decides otherwise. 

Article 1682. 

The appeal effects a stay if the matter to be settled deals with — 

The resumption of the course of treatment according to articles 603, 604, 952. and 

1112; 
The settlement in the form of a capital sum (arts. 616, 617, 955, 1117, 1316, 1317, 
and 1476). 

Article 1683. 

Paragraph 1. If a final decision of the insurance carrier, which on account of a 
change in conditions reduces or withdraws an accident compensation, has been con- 
tested, then the president on application may decree that the execution of the deci- 
sion shall be wholly or partly suspended in the meantime. 

Par. 2. The decree may at any time be revoked. It may not be contested ))y itself 
alone, but only together with the decision in the principal matter. 

Article 1684. 

Paragraph 1. The associates shall be called in to the proceedings of the judgment 
chamber in an order of succession determined in advance. The highest administra- 
tive authority determines the particulars. Associates who have been elected to the 
decision chamber shall not be called in to the proceedings of the judgment chamber 
as frequently as others. 

Par. 2. If for special reasons the president desires to depart from the order of suc- 
cession, he shall state these reasons in the documents. 

Article 1685. 

Paragraph 1. In matters of the accident insurance as far as possible those asso- 
ciates sha,ll be summoned who are persons belonging to such establishments which in 
technical and economic features closely resemble the establishment in which the 
accident occurred, regardless of the regular order. 

Par. 2. This must be done where the matter to be set'tled deals with accidents in 
agriculture or mining establishments, in so far as persons belonging to such establish- 
ments are available as associates at the superior insurance office. Exceptions are 
permissible for special reasons which shall be stated in the documents. 

Article 1686. 

Paragraph 1. The superior insurance office (decision chamber) shall elect for four- 
year terms at the end of the last year the physicians whom it shall summon as experts, 
according to need; they shall be elected from its district and, as a rule, after a hearing 
of the competent medical association. Such physicians, who stand in contract rela- 
tions to carriers of the accident insurance, or whose services are regularly used by 
them for the expression of opinions, shall not be summoned as experts in matters of 
the accident insurance. The same is correspondingly applicable to the invalidity 
and survivors' insurance. At least half their number shall reside at the seat of the 
superior insurance office. 

Par. 2. The names of the persons elected shall be published. 

Par. 3. The experts shall, before they express their opinion, l)e permitted to 
inspect the documents. 

Par. 4. The highest administrative authority shall regulate the execution of this 
provision. 

Article 1687. 

Carriers of the accident insurance not affected by the dispute may by a judgment 
be required to pay compensation, if they have been summoned to the proceedings. 

Article 1688. 

If an accident pension is reduced, the superior insurance office shall determine finally 
the extent to which each later pension payment shall be reduced to balance the 
excess already paid. 



744 BULLETIN OF THE BUKEAU OF LABOR. 

Article 1689. 

A decision or final decision which determines a settlement by a capital sum, accord- 
ing to articles 616, 617, 955, 1117, 1316, 1317, and 1476, can only be confirmed or 
abrogated in a judgment procedure. 

Article 1690. 

Paragraph 1. If the judgment chamber has abrogated the contested decision or 
final decision on the contested judgment on account of an essential defect in the pro- 
cedure, it may reassign the matter to the lower authority or to the insurance carrier. \ 

Par. 2. In connection herewith it may decree the granting of a provisional benefit. 

Article 1691. 

The provisions of article 1661 relating to the decision by the i)resident alone are not 
applicable to the procedure in appeals. 

Article 1692. 

Paragraph 1. If it has been determined that the judgment may not be contested 
by a rcA'iew or final appeal (arts. 1695, 1696, and 1700), then the president of the 
judgment chamber shall, with a reference to the legal provisions, state at the close of 
the judgment that no further legal remedy is permissible against it. 

Par, 2. If a preliminary decision has been issued (art. 1679 in connection with 
art. 1657), then it shall be stated that only an application for oral proceedings before 
the judgment chamber is permissible; the time limit for it is to be designated. 

Article 1693. 

Paragraph 1. If, in a case in which a review or final aj)peal is forbidden (arts. 
1695, 1696, and 1700), the superior insurance office desires to dissent from a funda- 
mental decision of the Imperial Insurance Office, officially published, or if the matter 
to be settled in such a case deals with an interpretation of legal provisions of funda- 
mental importance which has not yet been determined, it shall transmit the matter 
with a justification of its legal interpretation to the Imperial Insurance Ofiice. 

Par. 2. If the superior insurance office desires to dissent in such a case from an 
officially published decision of the State insurance office to which it is subordinate, 
it shall then transmit the matter to the State office. 

Par. 3. If the superior insurance office desires to dissent in the same matter from 
a fundamental decision of the Imperial Insurance Office and of a State insurance 
office officially published, then the Imperial Insurance Office is competent for the 
decision. 

Par. 4. The Imperial Insurance Office (or the State insurance office) decides in 
these cases in place of the superior insurance office. The parties affected shall be 
notified that the matter has been so referred. 

iii. procedure before the imperial insurance office (or the state 

insurance office). 

1. Sickness, and invalidity and surrivors^ insurance. 

Article 1694. 

Against the judgments of the judgment chambers a review is permissible in matters 
of the sickness insurance, as also of the invalidity and survivors' insurance. 

Article 1695. 

In the case of claims to benefits of the sickness insurance, the rcA- iew is excluded if 
the matter to be settled deals with — 

1. The amount of the pecuniary sick benefit, the house money, or the funeral 

benefit; 

2. Cases for relief in which the sick person was not disabled or was disabled less 

than eight weeks; 

3. Maternity benefits; . 

4. Family benefits; 

5. Settlement by capital sums; 
Q. Costs of procedure. 



workmen's IXSUEANCE code of JULY 19, 1911 GERMANY. 745 

Article 1696. 

In the case of claims to benefits of the invalidity and survivors' insurance, the review 
is excluded if the matter to be settled deals with — 

1. The amount, beginning, and termination of the pension; 

2. Settlement in the form of a capital sum; 

3. Widows' money; 

4. Orphans' settlements; 

5. Costs of i)rocedure. 

Article 1697. 

i The review may only be based on the fact that — 

1. The contested judgment is based on the nonemployment or incorrect employ- 

ment of the existing law or on an offense against the clear content of the acts. 

2. The procedure had essential defects. 

Article 1698. 

Paragraph 1. The provisions for the judgment procedure before the local insurance 
office are applicable to the procedure of review in so far as articles 1707 to 1721 do not 
provide otherwise. 

Par. 2. The provisions of articles 1656 to 1659 and 1661 are not applicable. 

2. Accident insurance. 

Article 1699. 

Against the judgments of the judgment chambers a final appeal is permissible in 
matters relating to the accident insurance. 

Article 1700. 

A final appeal is not permitted if the matter to be settled deals with — 

1. The medical treatment (art, 558, No. 1) or house care (art. 599); 

2. The pension for a disability which at the time of that decision of the court 

from which the final appeal is taken has been passed over without contest 
or passed over after a legal determination has been made; 

3. Parts of pensions which are to be granted for restricted periods which have 

already expked; 

4. Treatment in a medical institution; 

5. Pensions to relatives; 

6. Funeral benefits; 

7. Provisional pensions (art. 1585, par. 1); 

8. Redetermination of a permanent pension on account of change of condition; 

9. Settlement in the form of a capital sum; 
10. Costs of procedure. 

Article 1701. 

Paragraph 1. The provisions relating to the judgment procedure before the local 
insurance office, as well as articles 1679, paragraph 2, 1681, and 1682, are correspond- 
ingly^ applicable to the procedure of final appeal in so far as articles 1702 to 1721 do not 
provide otherwise. i 

Par. 2. Articles 1656 to 1659 are here not applicable. 

Article 1702. 

The employers and insured persons elected from the corresponding field of the 
accident insurance shall be called in to the proceedings. 

Article 1703. 

A carrier of the accident insurance which is not affected by the dispute may be 
summoned to the final appeal procedure. It can be required by a judgment to pay 
compensation even if a claim against it has already been disallowed with legal effect. 

Article 1704. 

Paragraph 1. If a senate of the Imperial Insurance Office has denied the obli- 
gation of an insurance carrier to provide compensation, because another insurance 



746 BULLETIN OF THE BUEEAU OF LABOP, 

carrier is liable, then the claim against the other insurance carrier may not be dis- 
allowed because the insurance carrier which was exempted in the former procedure 
is liable to compensation. 

Par. 2. If in a previous procedure a State insurance office denied the obligation 
to compensation, and if another State insurance office intends to disallow the claim 
because it believes that the insurance carrier exempted in the previous procedure ia 
liable to compensation, then the matter shall be transmitted to the Imperial Insurance 
Office for a decision. 

Article 1705. 

Paragraph 1. If the obligation to compensation of an insurance carrier has been 
determined finally, then on application the Imperial Insurance Office (judgment 
senate) may discontinue a procedure which, on account of the same accident, is pend- 
ing against another insurance carrier. 

Par. 2. The State insurance office shall take the place of the Imperial Insurance 
Office if the districts of the insurance carriers affected do not extend beyond the terri- 
tory of the federal State. 

Article 1706. 

Paragraph 1. If claims to compensation against several insurance carriers on 
account of the same accident have been allowed finally, then the Imperial Insurance 
Office (judgment senate) shall abrogate the determination which has been incorrectly 
made. The payments made shall be refunded from the compensation. In case of dis- 
pute the claim for reimbursement shall be decided by judgment procedure. 

Par. 2. In place of the Imperial Insurance Office the State insurance office shall 
decide if the districts of the insurance carriers affected do not extend beyond the 
territory of the federal State. 

3. General provisions. 

Article 1707. 

If an otherwise permissible remedy at law of a party refers also to claims for which 
the remedy at law is not permitted, then a decision on the case shall be made only 
if the requirements of the applications which are permissible have been met either 
wholly or partly. 

Article 1708. 

Paragraph 1. The Imperial Insurance Office decides as to the rertiedy at law. 

Par. 2. In the place of the Imperial Insurance Office the State insurance office 
shall decide if the district of the insurance carrier affected does not extend beyond 
the territory of the federal State. But in so far as an insurance carrier is affected for 
which the Imperial Insurance Office or another State insurance office is competent, 
the Imperial Insurance Office shall decide. 

Par. 3. The decisions shall be made by the judgment senate. 

Article 17,09. 

Paragraph 1. The remedy at law shall be stated in writing, and it shall state the 
reasons therefor. 

Par. 2. The senate may also alter the judgment contested for reasons other than 
those stated in the remedy at law. 

Article 1710. 

With the exception of the cases mentioned in article 1682, the remedies at law effect 
a stay if they are submitted by the insurance carrier in relation to amounts which 
must be paid subsequently for the period previous to the issuing of the contested 
judgment. 

Article 1711. 

If the contested judgment has been designated incorrectly as a final one (art. 1692), 
the remedy at law shall be permissible; it shall be submitted within one year after its 
delivery. 

Article 1712. 

If a member of the judgment senate has been disqualified for a reason which justifies 
his exclusion, or because prejudice is apprehended, then the judgment senate shall 
decide on the application for disqualification. The person disqualified shall not par- 
ticipate in the decision. In the case of a tie vote the application shall be considered 
as disallowed. 



WOEKMEN^S INSUKAXCE CODE OF JULY 19, 1911 GERMAXY. 747 

Article 1713. 

Paragraph 1. If the president of the senate is of the same opinion as the reporter 
that the remedy at law is not permissible, or has been submitted at too late a date, 
he may disallow it without oral proceedings. If the remedy at law has been disallowed 
as belated, the applicant may within one week after delivery of the decree appeal 
to the judgment senate; the decree must refer to it. 

Par. 2. Otherwise the decision must be made in a ptiblic session after an oral 
proceeding. 

Article 1714. 

The Imperial Insurance Office (or the State insurance office) shall decide in regard 
to the admission of persons to act as legal representatives before the senates as a busi- 
ness (art. 1663, par. 3). Article 1663, paragraph 4, is here corresj^ondingly applicable. 

Article 1715. 

Paragraph 1. If the judgment contested is abrogated then the senate may either 
itself decide on the matter, or return it for decision to one of the lower authorities, or to 
the insurance carrier. In such case it may order the granting of a provisional benefit. 

Par. 2. The office to which the matter is transferred is restricted to the legal grounds 
of appeal on which the abrogation of the contested judgment is based. 

• 

Article 1716. 

Paragraph 1. The Imperial Insurance Office and the State insurance office shall 
publish those of their decisions which are of fundamental importance. 

Par, 2. For the Imperial Insurance Office the imperial chancellor shall specify 
the manner of publication; the highest administrative authority shall do so for the 
State insurance office.' 

- Par. 3. These shall also specify the previous publications to which articles 1693, 
1717, and 1718 shall be applicable. 

Article 1717. 

Paragraph 1. If in a fundamental legal question a senate of the Imperial Insurance 
Office desires to dissent from the decision of another senate, it shall refer the matter 
with the reasons for its legal interpretation to the great senate (art. 101). The same 
is applicable if a senate desires to dissent from the decision of the great senate itself. 

Par, 2, The referring senate shall designate one of its members who, in the decision 
of the matter, shall as an associate in the great senate, take the place of another member 
of the same group of this senate. The imperial decree (art. 35, par. 2) shall specify 
the regular order in which the other members of the great senate shall participate in 
the decisions. 

Article 1718. 

Paragraph 1. Article 1717, paragraph 1, shall be correspondingly applicable, if a 
judgment senate of a State insurance office desires to dissent in a fundamental legal 
question fi'om an officially published decision of the Imperial Insurance Office. 

Par. 2. The referring senate of the State insurance office shall send one of its mem- 
bers to the proceedings of the great senate; he shall become an associate in the great 
senate. Moreover, a member of another State insurance office who, according to a 
detailed regulation of the State government, shall be designated in advance for a fiscal 
year, shall be added as a member of this senate. The imperial decree (art. 35, par. 2) 
shall specify which State insurance office shall delegate the second member. If only 
one State insurance office exists, it shall send two members. 

Article 1719. 

The State government shall specify the procedure to be followed if a senate of a 
State insurance office desires to dissent from the decision of another senate of the same 
State insurance office. 

Article 1720. 

Paragraph 1. The decisions of the senates shall be signed by the president, the 
one reporting and another member of the senate. 

Par. 2. If the president or the one reporting is unable to serve, another member of 
the senate shall sign for him. 



748 BULLETIN OF THE BUEEAU OF LABOR* 

Article 1721. 

The decree which rectifies a decision (art. 1673) shall be issued by the president 
and by those members of the senate who have signed the judgment; the decree can not 
be contested. 

IV, REOPENING OP THE PROCEDURE, 

1. Grounds for contesting. 
Article 1722. 

Paragraph 1, A procedure concluded by a valid decision may be reopened if — 

1, The judgment authority was not constituted according to regulations; 

2, A person has participated in the decision, who on legal grounds is not per- 

mitted to participate unless this hindrance has been successfully brought 
forward either by a disqualification or remedies at law; 

3, A person has participated in the decision although he has been disqualified 

as being prejudiced, and the disqualification was declared as well founded; 

4, A party was not represented in the procedure as required by the provisions of 

the law, in so far as he has not expressly or tacitly approved the conduct of the 
dispute. 
Par, 2. In the cases mentioned in numbers 1 and 3 the reopening is not permissible 
if the ground for contesting could have been made valid by a remedy at law. 

Article 1723. 

The reopening is also permissible if — 

1, A document, on which the decision is based, has been fraudulently made out 

or was forged ; 

2, In swearing to testimony or expression of opinion, on which the decision is 

based, the witness or expert has either purposely or negligently violated the 
obligation imposed by the oath; ; 

3, The representative of the party, or the opponent or his representative, has 

obtained the decision by an action punishable with a public penalty; 

4, *A person has participated in the decision who at the proceedings has violated 

his official obligations toward the party, in so far as such violation is punish- 
able by a public penalty; 

5, A criminal judgment on which the decision is based has been abrogated by 

another judgment which has become valid; 

6, A party subsequently finds or becomes able to use a document which would 

have brought about a decision more favorable to him. 

Article 1724. 

The reopening is only permissible in the cases of article 1723, numbers 1 to 4, if — 

1. A valid criminal sentence has been rendered on account of the penal act; 

2. A judicial criminal procedure could not be instituted or concluded for reasons 

other than absence of proof. 

Article 1725, 

In all of the cases of article 1723 the reopening is permissible only if the party, with- 
out any fault of his own, could not make valid the ground for contesting in the previous 
proceeding, especially by the use of a remedy at law. 

Article 1726, 

Together with the application for a reopening, the grounds for contesting which 
relate to an older decision of the same or of the lower authorities may be made valid 
if the contested decision is based on the older one. 

2. Competence. 

Article 1727. 

Paragraph 1, The judgment office whose decision has been contested shall decide 
on the application. 

Par. 2, If several decisions have been contested which were issued by judgment 
offices of different rank, the decision shall rest with the judgment office of higher rank. 



WORKMEN ^S INSUEANCE CODE OF JULY 19, 1911 — GERMANY. 749 

The superior insurance office shall decide in the place of the Imperial Insurance Office 
(or the State insurance office) if a judgment has been contested which was issued in a 
reviewing procedure on the basis of article 1723, Nos. 1, 2, 5, or 6. . 

V 3. Course of the procedure. 

Article 1728. 

Paragraph 1. The application must be filed within one month. 

Par. 2, The time limit begins with the date on which the party learns the ground 
of contesting, but not before the decision becomes effective. After the expiration of 
five years, beginning with the date of validity, the application is no longer permissible. 

Par. 3. The provisions of paragraph 2 shall not be applicable if the application is 
made for a reopening on account of inadequate representation. The time limit begins 
then from the date on which the judgment was delivered to the party or, if he was not 
able to conduct the litigation himself, to his legal representative. 

Article 1729. 

The reopening may also be started on the initiative of the officials. 

Article 1730. 

The provision of article 129, paragraphs 2 and 3, relating to the observance of the 
time limit, is also correspondingly applicable to the time limits of exclusion mentioned 
in article 1728. 

Article 1731. 

Paragraph 1. If the application is belated or is not permissible, the president of 
the judgment office can disallow it without oral proceedings by a decree which states 
the reasons therefor. The president of the judgment senate may do so only if he con- 
curs therein with the one reporting. 

Par. 2. The applicant may appeal within one week after the delivery of the decision 
to the competent authority. The decree must refer to this fact. 

Article 1732. 

Paragraph 1. If the application has been made in due time and is permissible, the 
principal matter shall be tried anew in so far as the grounds for contesting relate to it. 

Par. 2. Those provisions are applicable to the new procedure which are valid for 
the authority to which the new procedure has been refeiTed. 

Article 1733. 

Remedies at law shall be permissible in so far as they are stated — if they are stated — 
against the decisions of the authorities which have to deal with the reopening. 

4. Final 'provisions. 

Article 1734. 

With the approval of the Federal Council the reopening may by imperial decree be 
regulated in some other manner than that given in the preceding provisions. 

Section Three. — Special Kixds of Procedure. 

i. controversies of several insurance carriers in regard to the obligation 

to furnish compensation. 

Article 1735. 

If an accident insurance carrier is of the opinion that although an accident requiring 
compensation exists, the compensation should not be granted by it, but by another 
insurance carrier, then it shall grant the beneficiary a provisional relief, communicate 
the proceedings to the other insurance carrier, and request it to acknowledge its obli- 
gation to furnish compensation. 



750 BULLETIN OF THE BUEEAU OF LABOK. 

Article 1736. 

Paragraph 1. If the other insurance carrier declines to admit its obligation to fur- 
nish compensation or does not make a declaration within six weeks, the matter shall 
be referred to the Imperial Insurance Office. The latter shall decide by judicial pro- 
cedure which insurance carrier is liable to compensation. 

Par. 2. Where a State insurance office exists it shall decide if the district of the 
insurance carriers affected does not extend beyond the territory of the federal State. 
But in so far as an insurance carrier is participating, for which the Imperial Insurance 
Office or another State insurance office is competent, then the decision shall be made 
by the Imperial Insurance Office. 

Par. 3. Articles 1701, 1702, 1708, paragraph 2, 1712, 1714, and 1716 to 1721 are here 
correspondingly applicable. The decision shall be delivered to the insurance carriers 
affected and to the beneficiary. 

Article 1737. 

The Imperial Insurance Office (or the State insurance office) may summon to the 
procedure other insurance carriers according to article 1736. They can be ordered to 
pay a compensation, even if the claim against them has already been disallowed with 
legal effect. Article 1704 is here applicable. 

Article 1738. 

If the other insurance carrier (art.- 1735) acknowledges its obligation to furnish com- 
pensation, or if it has been declared liable to compensation by the Imperial Insurance 
Office, it shall refund all expenditures to the insurance carrier which has provided the 
provisional relief. Controversies over claims for reimbursement shall be decided by 
judgment procedure. 

ii. procedure of distribution. 

Article 1739. 

If the employment in which an accident occurred was carried on for several estab- 
lishments or activities which are insured with different insurance carriers, then the 
insurance carriers affected may distribute the burden of compensation among them- 
selves. 

Article 1740. 

Paragraph 1. If they can not agree, the Imperial Insurance Office (judgment 
senate) may on application of one of them distribute the burden of compensation 
according to its own discretion. 

Par. 2. Where a State insurance office exists it has the right to do so, if the district 
of the insurance carriers affected does not extend beyond the territory of the federal 
State. In so far as an insurance carrier participates, for which the Imperial Insurance 
Office or the State insurance office is competent, the authority is vested in the Imperial 

Par. 3. Articles 1701, 1702, 1712, 1714, and 1716 to 1721 are correspondingly appli- 
cable. 

Article 1741. 

An accident insurance carrier not affected by the dispute may be required to con- 
tribute a part of the contribution, even though the claim against it has already been 
disallowed with legal effect. 

Article 1742. 

All insurance carriers vv^ho are affected by the cost shall be callea in to the procedure 
dealing with the amount of the compensation. 

III. determination of the validity of a claim to a widow's pension. • 

Article 1743. 

If a widow, before she is an invalid, makes a claim on the basis of the sur-vdyor's 
insurance, the amount of her widow's pension shall on her application be determined 
and the widow shall be informed of her right to make application for payment after 
the invalidity occurs (decision on the validity of a claim). 



WOEKMEX^S IXSUEANCE CODE OF JULY 19, 1911 GERMANY. 751 

iv. contesting the final decisions of the insurance carrier. 

Article 1744. 

Paragraph 1. Against a valid decision or a final decision of an insurance earner a 
new examination can be applied for or undertaken if one of the conditions mentioned 
in article 1723, Nos. 1 to 3, 5 or 6, are present. 

Par. 2. Articles 1724 to 1734 are here correspondingly applicable. 

Section Four. — Special Provisions for the Navigation Accident Insurance, 

I. general provisions. 

Article 1745. 

The provisions relating to the determination of the benefits are also applicable to 
the na-vigation accident insurance in so far as articles 1746 to 1770 do nut prescribe 
otherwise. 

II. reporting op accidents. 
Article 1746. 

Paragraph 1. An accident, sustained by a person employed on a seagoing vessel 
during the voyage, and which has the consequences designated in article 1552, para- 
graph 1, shall be recorded in the journal (ship's journal, log book) and be briefly ! 
described there or in an appendix. i 

Par. 2. If no journal is kept, then the master of the vessel shall make a sj^ecial 
written report of such accident. 

Article 1747. 

Paragraph 1. The master of the vessel shall deliver a copy of each entry of this 
kind, attested by him, to that marine office (Seemannsamt) where it may first be done. 
In place of it he may also submit the ship's journal or the written record to the marine 
office (Seemannsamt) for the purpose of making of a copy. 

Par. 2. The marine office (Seemannsamt) shall return the ship's journal or the 
written record within 24 hours. 

Article 1748. 

If the accident occurs in Germany before or after the voyage, the master of the 
vessel shall not later than the third day after he has learned of it report it to the 
marine office (Seemannsamt), or if there is none in the place, to the local police 
authority, as well as to the administrative body of the association specified in the 
constitution. 

Article 1749. 

The marine office (Seemannsajut) or the local police authority shall transmit the 
copies and reports to the marine office of the home port. 

Article ]750. 

Paragraph 1. In the case of small scale establishments engaged in marine naviga- 
tion, as well as of sea and coast fishing (arts. 1186 and 1187), the accident report shall 
be directed to the local police authority in Germany in whose district the accident 
has occurred or where the injured person first remains after the accident. 

Par. 2. Special records of accidents on board are not to be kej^t. 

Article 1751. 

The Imperial Insurance Office shall draw up the model form for the description of 
accidents and for the records. 

Article 1752. 
Articles 1552 to 1558 shall otherwise be applicable to the reporting of accidents. 



752 BULLETIN OF THE BUREAU OF LABOR. 

m. investigation of accidents. 
Article 1753. 

Paragraph 1. The accident shall be investigated by a marine office (Seemannsamt) 
or by the German local police authorities with corresponding application of articles 
1559, 1563, paragraph 4, and 1564 to 1567. 

Par. 2. Articles 1754 to 1766 take the place of articles 1560 to 1562, and 1563, para- 
graphs 1 to 3. 

Article 1754. 

Paragraph 1. If the accident must be investigated in a foreign country, the master 
of the vessel shall before that German consular office (Konsulat) before which it can 
first be done, with the assistance of two ship's officers or other trustworthy persons, 
make a solemn declaration of the facts, which are to be established according to article 
1565. 

Par. 2. For the purpose of determining the matter, the marine office (Seemannsamt) 
may also obtain the solemn declaration of other persons and secure other proofs. 

Article 1755. 

Paragraph 1. If the accident is to be investigated in Germany, the master of the 
vessel shall apply for it at a marine office (Seemannsamt), or where none exists in the 
place, at a German local police authority. 

Par. 2. The authority invoked shall conduct the investigation. 

Article 1756. 

Accidents in German establishments conducting floating docks and other establish- 
ments designated in article 1046, No. 3, shall be investigated by the local police 
authority to which the accident was reported. 

Article 1757. 

On application of the parties affected the higher administrative authority may 
transfer the investigation to another marine office (Seemannsamt) or to other local police 
authorities. 

Article 1758. 

In the establishments administered by the Empire or a federal State, the investiga- 
tion shall be conducted by the service authorities to which they are subcrdinated. It 
may be transferred to other authorities. 

Article 1759. 

Article 42 of the Navigation Code is correspondingly applicable to the obligation of 
the ship's crew to cooperate in the case of declarations or proceedings for the purpose of 
the investigation of accidents. 

Article 1760, 

Paragraph 1. Articles 1562 and 1563, paragraphs 1 to 3, are as far as practicable 
applicable to the calling in of the parties affected to the investigation. 

Par. 2. Experts shall be called in on application of the undertaker of an establish- 
ment and of the master of the vessel ; the costs shall be paid by the insurance carrier. 

Article 1761. 

Paragraph 1. A special declaration (Verlclarung) (art. 552 of the Commercial 
Code), in compliance with the requirements of articles 1565 and 1760, shall take the 
place of the solemn declaration and of the investigation of the accident. 

Par. 2. The exemption from fees and stamp taxes (art. 137) is also applicable to the 
special declaration (Verhlarung) (par. 1), which is made before German authorities, 
and to the investigation of the accident at the marine office (Seemannsamt). 

Article 1762. , 

The authority shall transmit to the directorate of the accident association a certified 
copy of the investigation proceedings or of the special declaration. 



r 

I 



WORKMEN ^S INSURANCE CODE OF JULY 19, 1911 — GERMANY. 753 

Article 1763. 

For the accidents having the consequences specified in article 1559, paragraph 1, the 
provisions of the law relating to the investigation of marine accidents are applicable as 
to the obligation — 

1. Of the courts, port authorities, coast authorities, marine offices (Scemannsdmtcr) 

officials in charge of the ship registers, to report without delay marine acci- 
dents which have come to their knowledge (art. 14, ibid.); 

2. Of the German marine offices in foreign countries to undertake the investiga- 

tions which can not be deferred and the collection of evidence in marine 
accidents which have come to their knowledge (art. 15, ibid.). 

Article 1764. 

Paragraph 1. The accident reports (art. 1763) shall be forwarded to the directorate 
of the association. 

Par. 2, In addition, the obligation to report marine accidents to a marine office 
(Seemannsarat) continues to exist. 

Article 1765. 

If, within six months after the cognizance of the accident, the marine office (See- 
mannsamt) of the home port has not received any ncAvs relating to the investigation, 
it shall itself institute the investigation. 

Article 1766. 

Paragraph 1. In the case of small scale establishments engaged in marine na\^ga- 
tion, as well as of the sea and coast fishing establishments (arts. 1186 and 1187), the 
local police authorities to which the accident has been reported shall investigate it. 

Par. 2. On application of the parties affected, the higher administrative authorities 
may transfer the investigation to other police authorities. 

IV. penal provisions. 

Article 1767, 

Paragraph 1. The directorate of the association may impose fines of not more than 
300 marks [$71.40] upon any person who violates the provisions relating to — 
The entry in the journal (ship's journal) or other record of the accident; 
The communication of the entry ; 
The making of solemn declarations; 
The inauguration of the investigation. 
Par. 2. The ship owner is liable, according to article 1183, for the fines imposed on 
him or on the master of the vessel. 

Par. 3. On appeal the superior insurance off.ce decides finally. 

V. competence of the administrative bodies for determinations. 

Article 1768. 

If, according to article 1568, the directorate of the section must determine the acci- 
dent compensation, then that section in the district of which the home port of the 
A'essel is situated, or the establishment has its seat, is competent. 

Article 1769. 

In all of the cases mentioned in article 1568 the constitution of the navigation acci- 
dent association may transfer the determination as follows: 
To another administrative body of the association ; 
To a committee of the directorate of the association or of the section; 
To special commissions; . 
To local representatives (district agents). 

VI. controversies. 

Article 1770. 

Paragraph 1. Articles 1108 and 1109 shall be applicable to controversies relating to 
claims of seamen arising out of the provisions of articles 1083 to 1086, 1092, 1104, and 
1106. 

Par. 2. The same is applicable to claims of seamen which, according to article 1094, 
have been transferred to the insurance carrier. 



754 BULLETIN OF THE BUREAU OF LABOR. 

B. OTHER JUDGMENT MATTERS. 

1. general provisions. 

Article 1771. 

For controvei*sies which must be settled not by determination procedure, but 
according to the specific provisions of this law by judgment procedure, articles 1636 to 
1734 are correspondingly applicable in so far as articles 1772 to 1779 do not prescribe 
otherwise. 

*ii. competence. 

Article 1772. 

The local insurance office (judgment committee) decides disputes of the kind desig- 
nated in article 1771. 

Article 1773. 

The local insurance office which must decide the dispute over the principal claim is 
also competent for all claims relating to reimbursement, refunding, and other claims 
arising out of the principal claim. 

Article 1774. 

Paragraph 1. If the principal claim shall not be decided by a local insurance office, 
or if the claim for reimbursement has originated out of the obligation of a commune, a 
poor-law union, an undertaker of an establishment, or a funcj for the relief of indigent 
persons (arts. 1531, 1541), then that local insurance office is competent in whose dis- 
trict the insured person resides or is employed . 

Par. 2. If the insured person has no place of residence or employment in Geimany, 
or if he has died or is not accounted for, then article 1638 shall be applicable. 

Article 1775. 

A dispute between a sick fund which is subordinated to a local insurance office on the 
one hand and a miners' sick fund or substitute fund on the other shall be decided by 
the local insurance office. 

ui. other provisions. 

Article 1776. 

Only the remedy at law, but not the application for oral proceedings, is permissible 
against preliminary decisions. 

Article 1777. 
Only the review shall be permissible against judgments of the judgment chambers. 

Article 1778. 

Paragraph 1. The review is not permissible in the case of reimbursement and 
refunding claims if the matter to be settled deals with temporary benefits. 

Par. 2. It is, however, permissible for reimbursement and refunding claims which 
are regulated in book 5 of this law. 

Article 1779. 

The appeal and the review effect a stay if the matter to be settled deals with claims 
for reimbursement. 

C. DECISION PROCEDURE. 

Section One.— General Provisions. 

Article 1780. 

The decisions of the insurance authorities are arrived at by decision procedure, in 
so far as this law does not prescribe the judgment procedure. 



WORKMEN ^S IN"SUEAi!TCE CODE OF JULY 19, 1911 GEKMAXY. 755 

Article 1781. 

Paragraph 1. The law determines which decision matters shall be determined by 
the decision committee, decision chamber, or decision senate . Decision matters which, 
according to the law, shall be decided by the decision committee shall, in so far as 
appeal to decision procedure is permissible, be decided by the decision chamber and 
decision senate. This shall be correspondingly applicable to decision matters which, 
according to the law, shall be decided by the decision chamber as authority of first 
instance. 

Par. 2. The president of the decision chamber may also refer to it other decision 
matters if the matters to be settled deal with questions of fundamental importance; 
he must do so, if in case of differences of opinion a member, who participated in the 
preparation of the matter, makes application therefor. This shall be correspondingly 
applicable to the decision senate. 

Par. 3. Members of the Imperial Insurance Office (or the State insurance office), 
who are charged with the preparation of the matter, may be called into the decisions 
of the decision senate according to the detailed specifications of the decrees relating 
to the procedure (art. 35, par. "2, and art. 109, par. 1). 

Par. 4. In other respects these decrees shall specify who shall settle decision 
matters. 

Article 1782. 

The employers and insured persons elected from the corresponding field of the acci- 
dent insurance shall be called into the proceedings of the decision senates in matters 
of the accident insurance. 

Article 1783. 

Paragraph 1. In matters of the sickness insurance, the local insurance office or 
the superior insurance ofiice, in the district of which the fund affected has its seat, is 
locally competent as the authority of first instance of the decision procedure, in so far 
as this law does not provide otherwise. 

Par. 2. If several funds are affected, which have their seat in the district of several 
local insurance offices, then the local insurance office of that fund to which the insured 
person belongs is competent. If he does not belong to any of them, or the matter to 
be settled deals with a dispute according to article 258, then the superior insurance 
office shall decide which local insurance office is competent. If the funds have their 
seats in the districts of different superior insurance offices, then the highest adminis- 
trative authority shall determine the competent local insurance office or superior 
insurance ofl&ce. 

Article 1784. 

In matters of the accident insurance the local insurance office or superior insurance, 
office in whose district is located the seat of the establishment or where the insured 
activity is exercised, is locally competent as the authority of first instance of the deci- 
sion procedure, in so far as this law does not provide otherwise. 

Article 1785. 

Paragraph 1, In matters of the invalidity and survivors' insurance, the local 
insurance office or the superior insurance office in the district of which the employ- 
ment which gives occasion for the decision took place, and in the case of voluntary 
insurance the local insurance office or the superior insurance office in whose district 
the insured person resides is locally competent as the authority of first instance of the 
decision procedure, in so far as this law does not provide otherwise. 

Par. 2. For claims of the survivors the local insurance office or superior insurance 
office is also competent, in whose district the survivors reside. 

Article 1786. 

Paragraph 1. If an office believes itself not to be competent, but that another 
office is the competent one, then it shall transfer the matter to the latter. 

Par. 2. If this oflBice also does not believe itself to be competent, then article 1G4(), 
paragraphs 2 and 3, shall be applicable. 

Article 1787. 

In the case of a dispute between a sick fund and a miners' sick fund or a substitute 
fund, article 1775 shall be applicable. 



756 BULLETIN or THE BUREAU OF LABOK. 

Article 1788. 

In so far as the highest administrative authorities have transferred decision rights 
to the administrative bodies specified in article 112, the decisions of these adminis- 
trative bodies, as far as the legal remedies in the decision procedure are concerned, 
are equivalent to the decisions of the local insurance office. 

Article 1789. • 

The same provisions as for the judgment procedure shall also be applicable to the 
disqualification and nonacceptance of persons, the elucidation of the state of affairs, 
as well as the securing of evidence. 

Article 1790. 

Paragraph 1. The proceedings of the decision procedure are not public. With 
reservation of article 78, paragraph 3, article 1667 shall be correspondingly applicable 
to the voting of decision authorities for the decision chamber. 

Par. 2. The decision shall be delivered to the parties affected. 

Section Two. — Appeals. 

Article 1791. 

An appeal against the decisions of the insurance carriers is permissible in so far as 
this law does not provide otherwise. The appeal shall be directed — 
; In matters of the sickness, and invalidity and survivors' insurance, to the local 

: insurance office; 

■ In matters of the accident insurance, to the superior insurance office. 

Article 1792. 

Against the decisions of the local insurance office as the authority of first instance 
the appeal to the superior insurance office is permissible, in so far as this law does not 
provide otherwise. 

Article 1793. 

Against the decisions of the superior insurance oflace as the authority of first instance 
the appeal to the Imperial Insurance Office (or the State insurance office, art. 1800) 
is permissible, in so far as this law does not provide otherwise. 

Article 1794, 

The authority which has to decide on the appeal may j^ostpone the execution of the 
decision. 

Article 1795. 

If the appeal is permissible and has been filed in due time the parties affected shall 
be given a hearing. 

Article 1796. 

If the appeal is well founded, the authorities competent for the decision may either 
decide in the matter themselves or refer it back to an authority of lower instance or to 
the insurance carrier whose decision has been contested. Article 1715, paragraph 2, 
shall in such case be correspondingly applicable. 

Section Three. — Further Appeals. 

Article 1797. 

Paragraph 1. In so far as this law does not provide otherw>se, there is permissible 
against the decision issued on appeal by — 

The local insurance office, the further appea.^ to the superior insurance office; 
The superior insurance office, the further appsai to the Imperial Insurance Office 
(or the State insurance office). 
Par. 2. The same provisions shall be applicable to the Drocedure as to the appeal. 



WOEKMEN^S IXSUEANCE CODE OF JULY 19, 1911 GERMANY. 757 

Article 1798. 

The decisions issued on further appeal by the superior insurance office are final. 

Article 1799. 

If the superior insurance office desires to dissent in a case, in which it must decide 
finally, from an officially published and fundamental decision of the Imperial Insur- 
ance Office (or the State insurance office), or the matter to be settled in such a case deals 
with an interpretation of legal provisions of fundamental importance which have not 
yet been determined, then article 1693 shall regulate the procedure. 

Article 1800. 

Paragraph 1. Where a State insurance office exists, it shall decide on decision mat- 
ters, if the district of the insurance carrier affected does not extend beyond the territory 
of the federal State. Otherwise the decision shall be made by the Imperial Insurance 
Office. 

• Par. 2. In so far as an insurance carrier is affected, for which according to paragraph 
1 the Imperial Insurance Office or another State insurance office is competent, the 
decision shall be made by the Imperial Insurance Office. 

Article 1801. 

The provision of article 1716 relating to the publication of fundamental decisions 
shall also be applicable to decision matters. 

D. COSTS AND FEES. 

i. costs of the procedure. 

Article 1802. 

If a party affected has willfully or through obstructive measures or deception caused 
expenditures in the procedure, the insurance authority can charge the same to him, 
either wholly or partly. 

Article 1803. 

Paragraph 1. In judgment matters of the sickness insurance the superior insurance 
office shall impose a fee upon the defeated party. It shall be fixed in proportion to the 
value of the thing in dispute, but shall not exceed 20 marks [$4.76] and shall be deter- 
mined in the decision. 

Par. 2. The imperial decree relating to the procedure (art. 35, i^^r. 2) shall deter- 
mine the particulars hereto. 

Par. 3. The highest administrative authority shall regulate the collection of the fee. 

II. fees of lawyers. 
Article 1804. 

Paragraph 1. The compensation for the professional se^^dces of lawyers in the pro- 
cedure before insurance authorities shall be determined according to a schedule of fees. 

Par. 2. The schedule of fees shall be issued by imperial decree with the approA^al 
of the Federal Council and for the procedure before the State insurance office by the 
State government. 

Article 1805. 

An agreement as to higher amounts than those provided by the schedule of fees is 
void. 

18544-^— No. 96—12 27 



758 BULLETIN OF THE BUKEAU OE LABOR. 

INTRODUCTORY LAW FOR THE WORKMEN'S INSURANCE CODE.^ 

SECTION A. 

i. general provisions. 

Article 1. 

As far as the measures for its administration are concerned^ the Imperial Insurance 
Code shall come into force at once. 

, Article 2. 

Paragraph 1. The provisions of its fourth book and the other provisions of the 
Imperial Insurance Code necessary for their operation, come into force on Januarv 1, 
1912. 

Tar. 2. On this date article 15 of the customs-tariff law of December 25, 1902 
(Reichs-Gesetzblatt, p. 303), shall be repealed. The sums accumulated and the 
interest (survivors' insurance fund, law of Apr. 8, 1907, Reichs-Gesetzblatt, p. 89) 
shall be used for the subsidies of the Empire for the survivors' insurance (arts. 1284 
and 1285 of the Imperial Insurance Code). 

Article 3. 

The administration of the survivors' insurance fund shall be transferred to the 
imperial chancellor (Imperial Treasury Department) under the supervision of the 
imperial public debt commission. The law of June 1, 1909, on the administration of 
the imperial invalidity fund and the survivors' fund (Reichs-Gesetzblatt, p. 469), 
is repealed from October 1, 1911, as far as it relates to the survivors' fund. 

Article 4. 

Paragraph 1. The dates on which the other provisions of the imperial insurance 
law will come in force shall be determined by imperial decree with the approval 
of the Federal Council. 

Par. 2. For the period up to December 31, 1914, the Federal Council may specify 
according to need, as to the term of office of the present representatives of the under- 
takers or other employers, as well as of the insured persons, in insurance authorities, 
lower administrative authorities, and insurance carriers. This is also applicable to. 
nonpermanent members of the Imperial Insurance Office. For the nonpermanent 
members of the State insurance offices the highest administrative authority is com- 
petent in this regard. 

Article 5. 

On these dates (art. 2, and art. 4, par. 1), as far as this law does not provide otherwise, 
the Imperial Insurance Code takes the place of the corresponding provisions — 

Of the sickness insurance law of June 15, 1883 (Reichs-Gesetzblatt, p. 73), in the 

form of April 10, 1892 (Reichs-Gesetzblatt, p. 379), and of the laws of June 

30, 1900 (Reichs-Gesetzblatt, p. 332), and of May 25, 1903 (Reichs-Gesetzblatt, 

p. 233); 
Of the law concerning the accident and sickness insurance of persons employed 

in agricultural and forestry establishments, of May 5, 1886 (Reichs-Gesetzblatt, 

p. 132), B. sickness insurance; 
Of the law concerning the amendment of the accident insurance laws of June 

30, 1900 (Reichs-Gesetzblatt, p. 573); 
Of the industrial accident insurance law of June 30, 1900, in the form of the jDubli- 

cation of July 5, 1900 (Reichs-Gesetzblatt, p. 585); 
Of the accident insurance law for agriculture and forestry of June 30, 1900, in 

the form of the publication of July 5, 1900 (Reichs-Gesetzblatt, p. 641); 
Of the accident insurance law for the building trades of June 30, 1900, in the 

form of the publication of July 5, 1900 (Reichs-Gesetzblatt, p. 698); 
Of the navigation accident insurance law of June 30, 1900, in the form of the 

publication of July 5, 1900 (Reichs-Gesetzblatt, p. 716); 
Of the invalidity insurance law in the form of the publication of July 19, 1899 

(Reichs-Gesetzblatt, p. 463). 



1 Einfiihrungsgesetz zur Reichsversicherungsordnung. (Nr. 3922.) Vom 19. Juli 1911. Reichs-Gesetz- 
blatt Aug. 1, 1911, pp. 839 ff. 



workmen's IXSUSANCE code of JULY 19, 1911 GERMANY. 759 

Article 6. 

Paragraph 1, With reservation of paragraph 2 and of articles 85 to 99, the provi- 
sions of the Imperial Insm-ance Code relating to time limits are also in force for the 
time limits whose duration began before the dates specified in articles 2 and 4 but 
were not completed on these dates. 

Par. 2. The time limit shall be specified according to the old law, if it would be 
longer according to that than according to the Imperial Insurance Code. 

Par. 3. The beginning of the time limits shall be specified according to the old 
law. 

II. insurance authorities. 

Article 7. 

Paragraph 1, In so far as the provisions of the Imperial Insurance Code come 
into force, before the local insurance offices and superior insurance offices are estab- 
lished, then the duties assigned to them by those provisions or this law shall ]ye assumed 
as follows: 

In the case of judgment matters, the lower administrative authority shall take 
the place of the local insurance offices, and the arbitration courts that of the 
superior insm*ance offices; 
In other respects, by the authorities specified by the highest adminiKtrative 
authority. 
Par. 2. The provisions contained in the following articles for local insurance 
offices and superior insurance offices are also applicable to these authorities. 

Article 8. 

Paragraph 1. In place of the insurance representatives, the local insurance office 
shall call in the representatives of the employers and of the insured persons at the 
lower administrative authority or at the local pension office (Re^itenstelle) (arts. 61, 
81, and 82 of the invalidity insurance law). 

Par 2, As far as the district of an existing authority (art. 7) is not covered by 
that of the corresponding insurance authorities, the highest administrative authority 
shall determine particulars concerning the calling in of representatives or associates. 
The same is applicable where these duties are transferred to authorities other than 
the arbitration courts for workmen's insurance. 

Article 9. 

Paragraph 1. On application of sick funds affected the local insurance office 
may decree that special representatives of the employers and insured persons shall 
be elected in equal number for its decisions relating to the forming and changing of 
the external and internal constitution of the sick funds. The election is governed 
according to articles 61 to 63 of the invalidity insurance law. However, the local 
insurance office can determine the numl^er of the representatives- according to need; 
in this case only the local, establishment, building, and guild sick funds, and the 
sickness insurance of the communes, are entitled to vote. 

Par. 2. The union of communes (arts. 526 and 527 of the Imperial Insurance 
Code) shall appoint one or more representatives to look after the right-s of the groui)s 
which the Imperial Insurance Office has newly admitted to the sickness insuranc(\ 

Par. 3. The highest administrative authority may specify the particulars herewith. 

Article 10. 

Competent employees who on account of the reorganization are no longer needed 
in the service of the insurance carriers shall, as far as possible, be given consideration 
in the appointment of new emj^loyees. 

Article 11. 

Paragraph 1. The superior insurance office shall assume the rights and duties 
of the arbitration comt for workmen's insurance. The documents are to be transferred 
to the superior insurance office. The State shall pay a proper compensation for the 
furniture in so far as it is not its property. In case of dispute, an arbitration court 
shall decide, according to ai-ticles 1025 et sequentia of the Code of Civil Procedure. 

Par. 2. The highest administrative authority may specify the particulars. 



760 BULLETIN OF THE BUEEAU OF LABOR. 

Article 12, 

If the highest administrative authority so orders, the insurance association shall 
until April 1, 1912, permit the superior insurance office to retain those officials whom 
it has placed at the disposition of the arbitration com-t for workmen's insurance. 

Article 13. 

If a State insurance office is discontinued, the imperial chancellor, with the approval 
of the competent highest administrative authority, shall regulate the transfer of its 
powers to the Imperial Insurance Office. 

iii. sickness insurance. 

Article 14. 

Paragraph 1. The imperial decree (art. 4) shall specify the date up to which all 
communal sickness insurance shall be closed. Articles 282 to 284 and 300 to 305 of 
the Imperial Insurance Code are correspondingly applicable to the closing. Assets 
shall be treated in the same manner as property, of the communal sickness insurance. 
Article 294, paragraphs 1, 2, and 3, sentence 1, are here correspondingly applicable, 
but the additional funeral benefit shall be paid to all insured persons who are employed 
in a commune with such a special fund. 

Par. 2. Advances which have been paid according to article 9 of the sickness insur- 
ance law shall be refunded as far as any assets remain after the liquidation of the 
affairs (art. 303 of the Imperial Insurance Code). 

Article 15. 

Paragraph 1. If a district for which, according to the Imperial Insurance Code, 
a local sick fund would have to be established already has a common local sick fund 
(art. 16, par. 4, and art. 43, of the sickness insurance law), whose membership includes 
all persons subject to insurance in the local fund according to the sickness insurance 
law, it may be developed into a general local sick fund for it. 

Par. 2. If the membership of a common local sick fund already embraces a large 
part of the persons subject to insurance in the local fund of the district according to 
the sickness insurance law, then this fund, with the approval of the superior insurance 
office, may be. developed into a general local sick fund. 

Par. 3. Membership in such funds shall in such case be extended to all insured 
persons whom the Imperial Insurance Code assigns to the local sick funds. 

Article 16. 

If within the first three years after the Imperial Insurance Code comes into force the 
assets of a newly established local or rural sick fund are not sufficient to cover the 
expenditures which become due, then the union of communes must provide the 
necessary advances. The highest administrative authority may specify the particulars 
and determine the date up to which the advances shall be refunded. 

Article 17. 

The imperial decree (art. 4) shall specify the date up to which existing local sick 
funds for single or for several branches of industry or kinds of establishments or for 
members of one sex only, as well as existing establishment sick funds and guild sick 
funds, may submit to their local insurance office the application for authorization. 

Article 18. 

Paragraph 1. A local sick fund may submit this application only if its general 
meeting has decided for it by a majority vote. 

Par. 2. In the case of an establishment sick fund the employer may submit the 
application after a hearing of the insured persons; in the case of a guild sick fund the 
guild may do so after a hearing of the journeymen's committee. 

Article 19. 

Simultaneously with the application for authorization, or, in case this is not possible, 
later on within a time limit determined by the local insurance office, a draft of the 



T\^OEKMEn's INSUEANCE code of JULY 19. 1911 GERMANY. 761 

constitution of the fund complying with the requirements of the provisions of the 
Imperial Insurance Code must be submitted. 

Article 20. 

The local insurance office (decision committee) shall investigate whether the con- 
ditions have been complied with under which the fund may be authorized, and shall 
transmit the application with the constitution and an opinion to the superior insurance 
office for decision. The parties affected have the right of appeal to the highest admin- 
istrative authority within one month against the decision. 

Article 21. 

If, within six months after the date determined according to article 17, the con- 
stitution of a sick fund has not been made to correspond with the pro\'ision8 of the 
Imperial Insurance Code, or if the application for admission has not been made in due 
time J the fund must be closed. 

Article 22. 

The superior insurance office shall specify whether a building sick fund shall con- 
tinue as an establishment sick fund according to article 249 of the Imperial Insurance 
Code. It determines the amount of its benefits. If the constitution is not changed 
within the time limit specified, then it shall be changed on the initiative of the officials 
mth legal validity. 

Article 23. 
On the authorization of a guild sick fund its property shall become part of its assets. 

Article 24. 

A person who has been a voluntary member of a guild sick fund until the present 
time is entitled to continue his membership. 

Article 25. 

Paragraph 1. The imperial decree (art. 4) shall specify the date on the expiration 
of which the certificates issued to registered aid funds according to article 75a of the 
sickness insurance law become void. 

Par. 2. The application for authorization as substitute fund (art. 503 of the Imperial 
Insurance Code) may be granted only if the registered aid fund has submitted the 
application six months before this date. 

Article 26. 

On application and upon proof of the need therefor the Federal Council may also 
permit a mutual insurance association to be authorized as a substitute sick fund 
according to articles 503 et sequentia of the Imperial Insurance Code, if the association 
has been given a certificate as a register.ed aid fund according to article 75a of the 
sickness insurance law and such certificate is dated after April 1, 1909. 

Article 27. 

Paragraph 1. The registered aid funds shall be considered as mutual insurance 
associations in the meaning of article 26 of this law, of articles 503 et sequentia, and of 
article 1438 of the Imperial Insurance Code until a law for the annulment of the law 
relating to registered aid funds (Reichs-Gesetzblatt, 1876, p. 125, and 1884, p. 54) 
comes into force. 

Par, 2. Until such a law comes into force, the following changes shall be made in 
the case of the aid funds and their members designated in article 503, paragraph 1, 
of the Imperial Insurance Code: 

Article 504 of the Imperial Insurance Code shall replace article 6, paragraph 2, of 
the aid funds law (Hilfskassengesetz); 



762 BULLETIN OF THE BUREAU OF LABOR. 

Article 508 of the Imperial Insurance Code shall replace article 12 of the aid 

funds law; 
Article 509, paragraphs 1 to 3, of the Imperial Insurance Code shall replace 

article 13 of the aid funds law; 
Article 511 of the Imperial Insurance Code shall replace article 15, sentence 3, of 

the aid funds law; 
Article 512 of the Imperial Insurance Code shall replace article 15, sentences 

4 and 5, of the aid funds law. 

Article 28. 

Registered aid funds which are not authorized as substitute funds shall in cases 
calling for relief, and which are in course of settlement after the date determined in 
article 25, paragraph 1, shall continue to grant the benefits to their members subject 
to insurance for the period provided by the constitution. Article 212 of the Imperial 
Insurance Code shall be correspondingly applicable to the sick fund of the insured 
person only after the expiration of this period. Controversies shall be decided by 
procedure of determination according to the Imperial Insurance Code. 

Article 29. • 

Paragraph 1. If -when the Imperial Insurance Code comes into force insured 
persons subject to insurance in rural sick funds are members of a local or an establish- 
ment (or a building) sick fund, they may — 

1. Kemain members of their fund if it continues to exist; 
■ v. 2. Become members of the local sick fund which accepts the members of their 
branch of industry or in the absence of such a fund and if their former fund is 
dissolved, become members of the general local sick fund. 
5. Again become members of the local sick fund, if on account of a change in 
employment they have become members for a period of not more than 26 
weeks in another local sick fund, in a rural sick fund, in an establishment sick 
fund, or in a guild sick fund in the district of the same local insurance office. 
Par. 2. If they have made use of this right (No. 3), they may at the close of a fiscal 
year go over to the rural sick fund, if they have notified the directorate of their with- 
drawal at least three months in advance. 

Article 30. 

In cases of insurance for which at the time this law comes into force the obligation 
of the sick fund to grant benefits still continues according to the old law, the pro- 
visions of the Imperial Insiu-ance Code are applicable l3eginning with this date in so 
far as they are more favorable to the beneficiary. 

Article 31. 

Statutory provisions which according to article 51, paragraph 2, of the sickness 
insui-ance law exempt the employer from the payment of a contribution at his own 
expense may remain in force for not more than five years after the date determined 
according to article 4. 

Article 32. 

For employees of a fund which in consequence of the reorganization has been dis- 
solved or closed, the period of expiration of the contract relation is extended to 12 
months regardless of article 302, paragraph 1, of the Imperial Insurance Code. Com-' 
potent employees who in consequence of the reorganization are no longer needed in 
the service of a sick fund shall as far as possible be given consideration by the insur-. 
ance carriers in the appointment of new employees. 

Article 33. 

Paragraph 1. On the approval or the drawing up of the service regulations, the 
superior insurance office shall specify in what manner and within what time the 
service regulations must be made known to all employees of the fund. At the time 
of the notification the attention of the employees shall be called to the provisions of 
articles 34 to 37 and 39. 



workmen's insurance code of JULY 19, 1911 GERMANY. 763 

Par. 2. The service regulations shall come into force on the expiration of one month 
after the date specified by the superior insurance office according to paragraph 1. 

Article 34. 

Paragraph 1. With reservation of article 351, paragraph 2, of the Imperial Insur- 
ance Code, employees already in the serWce of sick funds before the promulgation 
of the ser\dce regulations are also subject to them in so far as according to State laws, 
they are not State or communal officials or exercise the rights and obligations of such 
officials according to article 359 of the Imperial Insurance Code. 
■ Par. 2. To these employees, all the pro\dsions which the Imj)erial Insurance Code 
prescribes for employees subject according to it to the ser\'ice regulations are aLso 
applicable. The contractual provisions w^hich are permissible according to the 
Imperial Insurance Code and which relate to giving notice of dismissal or to discharge, 
if they have been agreed on with these employees before July 1, 1909, shall remain 
in force in so far as they do not run counter to articles 35 to 39. 

Par. 3. Employees of funds who give notice that they intend to resign before the 
service regulations come into force shall not be subject to them. If an employee 
gives such notice, then the service relation terminates on the expiration of six months, 
or if according to the contmct, he may give notice of resignation at an earlier date 
than on such date. 

Article 35. 

Paragraph 1. .If the payments to an employee who, according to article 34 is 
subject to the ser\dce regulations, exceed the rates of the schedule of salaries, these 
payments shall be continued if they have been agreed on in this amount before January 
1, 1908, or agreed on according to a schedule of salaries formulated before that date, 
or if the service regulations specify such a rate. 

Par. 2. Otherwise the local insurance office (decision committee) may on appli- 
cation of the du'ectorate of the fund permit the payments to be continued. The 
application may be submitted only within one month after the service regulations 
come into force. 

Par. 3. The approval shall be refused if the payments are in striking dispro])ortion 
to the rates of the schedule of salaries. Otherwise the approval ma 3' be refused in so far 
as the value of the payments exceeds that of the payments according to the schedule 
of salaries by more than one-fourth or has been agreed on only after July 1 , 1910. 

Par. 4. If the approval is refused, the directorate of the fund has the right to appeal 
to the superior insurance office (decision chamber). It shall decide finally. 

Par. 5. Whatever applies to the payments to an employee shall also be applicable 
to his rights to retirement pension, waiting-money (um-iegdd), or similar pa^Tnents, 
as well as to the provision for his sur\dvors. 

Article 36." 

If the higher payments according to article 35 can not be paid further, and if the 
employee is unwilling to continue the contract relation under the conditions of the 
new schedule of salaries after the date on which he could soonest be given notice to 
leave or be discharged, then the directorate shall at the earliest possible date make 
use of its right to give notice of dismissal or of discharge. Article 357, paragraph 2, of 
the Imperial Insurance Code is correspondingly applicable. 

Article 37. 

Paragraph 1. Within two years after the service regulations come into force the 
local insurance office (decision committee) may decree that an em|)loyee subject to its 
orders according to article 34, whose technical knowledge and efficiency are evidently 
not sufficient for his position, shall be assigned to another position in the service of 
tTie fund which corresponds to his technical knowledge and efficiency. This is sub- 
ject to the proviso that the employee has not been emj^loyed by the fund more than 
five years in his present or a similar position. No conclusion regarding the lack of 
technical knowledge shall be based on the fact that the employee has not gone through 
a specified course of education. 

Par. 2. At the same time the local insurance office may specify that the employee 
shall continue to receive his higher payments, in so far as they are not conspicuously 
out of proportion to the rates which the salary schedule proAides for th(^ position newly 
assimed. 



764 BULLETIN OF THE BUEEAU OF LABOE. 

Par. 3. The directorate and the employee shall be given a hearing before the 
decree is issued; it shall be delivered to both of them. On appeal the superior insur- 
ance office (decision chamber) shall decide, and on further appeal the Imperial Insur- 
ance Office (decision senate). The time limit for the appeal and for the further appeal 
is one month for each of them. 

Par. 4. Within one month after the transmission of the final decree the employee 
shall declare to the directorate whether he is willing to accept the position. If 
he is unwilling, then the directorate shall give him notice of dismissal with a time 
limit of six months. If it can terminate the contract relation at an earlier date, it 
shall as soon as possible make use of its right of giving notice of dismissal or of 
discharge. Article 357, paragraph 2, of the Imperial Insurance Code is correspond- 
ingly applicable. 

Article 38. 

Paragraph 1. Articles 349, 350, 354, paragraphs 2 to 6 and 358 of the Imperial Insur- 
ance Code shall at once come in force for ail employees who in the future shall be sub- 
ject to the service regulations. So long as the local insurance offices and the superior 
insurance offices have not been established, the courts of arbitration for workmen's 
insurance shall take the place of the local insurance office and the Imperial Insurance 
Office (or the State insurance office) that of the superior insurance office. 

Par. 2. The provisions of the Imperial Insurance Code relating to the judgment 
procedure are correspondingly applicable to the procedure and time limits. The 
imperial chancellor may specify the particulars in this connection. 

Article 39. 

Legal actions which ha^e been taken after January 1, 1908, shall be ineffective, 
in so far as they frustrate or materially impede the execution of articles 34 to 38. The 
same is applicable to contractual proidsions made before the service regulations come 
into force which withdi-aw from the regular courts disputes relating to pecuniary 
affairs between the sick fund and the employees on account of or originating in the 
giving of notice of dismissal or discharge. 

Article 40. 

If an employee during the period between May 30, 1911, and the coming into force 
of this law has been given notice of dismissal or received his discharge, the directorate 
shall, if he makes application within 14 days after the coming in force of this law, 
determine anew as to the giving of notice of dismissal or discharge; the earlier notice 
of dismissal or discharge becomes ineffective unless it is finally confirmed. 

Article 41. 

Contract relations existing at the time when the Imperial Insurance Code comes 
into force between sick funds and hospitals shall terminate not later than two years 
after this date, in so far as they run counter to the application of article 184, paragraph 
5 or of article 371, paragraph 2 of the Imperial Insurance Code. 

Article 42. , 

Paragraph 1. Provisions of State laws which oblige the employer to make pro- 
\TLsion for the medical treatment and care of the sick domestic servants shall be abro- 
gated. 

Par. 2. Provisions of the State laws which relate to the continuation of the payment 
of wages or of similar payments in times of sickness remain unaffected but with reser- 
vation of article 436 of the Imperial Insurance Code. 

IV. accident insurance. 

Article 43. 

Paragraph 1. For branches of industry which the Imperial Insurance Code sub- 
jects to the accident insurance for the first time, the Federal Council shall specify to 
what extent new accident associations shall be established or how far the branches 
shall be assigned to existing accident associations. 

Par. 2. A hearing shall be given in advance to the representatives of the industry 
branches affected as well as to the associations affected. 



workmen's insurance code of JULY 19, 1911 GERMANY. 765 

Article 44. 

Until the date of the membership assignment to the system of mutual trade associa- 
tions of branches of industry, which have just been subjected to the accident insur- 
ance, the Federal Council, after a hearing of the directorates of the associations affected, 
may separate branches of industry from existing accident associations and assign them 
to another accident association, or establish for them a special accident association, 
even if the conditions do not exist under which the status of accident associations can 
be changed either according to the Imperial Insurance Code or to the old law. 

Article 45. 

Paragraph 1. If a new accident association is established, a general meeting shall 
be called which decides on the constitution. The meeting shall consist of delegates 
from chambers of commerce, chambers of handwork, chambers of industry, or similar 
economic bodies representative of the branches of industry affected. 

Par. 2. The highest administrative authority shall designate the bodies which may 
send delegates, and shall specify for each body the number of delegates according to 
its economic importance. 

Par. 3. If the district of an accident association extends beyond the territory of a 
federal State, the imperial chancellor after consultation with the highest administra- 
tive authority shall specify the bodies and the number of their delegates. 

Article 46. 

The Imperial Insurance Office shall convene the general meeting and direct the 
proceedings until a proAdsional directorate has been elected. 

Article 47. 

In the case of newly established accident associations, the first term of ofSce of the 
representatives of the insured persons shall terminate on the same date on which the 
term of oflSce of these representatives terminates in the case of the existing accident 
associations. 

Article 48. 

Paragraph 1. The Imperial Insurance Office (or the State insurance office) shall 
specify the date up to which the accident associations shall decide on the changes in 
their c«nstitutions according to the Imperial Insurance Code. This date shall be 
specified in such a manner that the constitutions may come in force at the time when 
the pro\dsions of the Imperial Insurance Code relating to the accident insurance come 
in force. 

Par. 2. If the accident association does not comply with the decree in proper time, 
then the Imperial Insuranjce Office (or the State insurance office) shall change tue con- 
stitution in accordance with its right of supervision. 

Article 49. 

Every undertaker of an establishment which the Imperial Insurance Code has for 
the first time subjected to the accident insurance shall, within a time limit to be deter- 
mined and published by the Imperial Insurance Office, register the establishment at the 
local insurance office in whose district the establishment has its seat. The product 
and the class of the establishment and the average number of persons employed who 
are subject to insurance shall be stated. 

Article 50. 

Paragraph 1. If the registration has not been made or is incomplete, the local 
insurance office shall itself give the data or supplement them according to its own 
knowledge of the conditions. By means of fines of not more than 100 marks [$23.80] 
it may compel the undertakers to give information within a set time limit. 

Par. 2. On appeal against the determination of the fine the superior insurance 
office decides finally. 

Article 51. 

Paragraph 1 . The local insurance office shall make up a list of the establishments 
designated in article 49 of its district which indicates by branches of industry the prod- 



^QQ. BULLETIN OF THE BUREAU OF LABOE. " 

uct and the class of the establishments, as well as the number of employed persons 
who are subject to insurance. 

Par. 2, The list shall be submitted to the superior insurance office and if necessary 
be corrected by it. 

Article 52. 

The superior insurance office shall transmit the lists of these establishments subject 
to insurance located in its district to the Imperial Insurance Office; the latter shall 
refer the establishments to the competent directorates of associations. 

Article 53. 

Articles 49 to 52 are not applicable if the Empire, a federal State, a union of com- 
munes, a commune, or another public corporation is the insurance carrier. 

Article 54. 

So long as the accident associations have not invested one-fourth of their assets in 
bonds of the Empire or of the federal States (art. 718, par. 1, arts. 984, and 1157, of the 
Imperial Insurance Code) they must invest annually at least one-third of the increase 
of their assets in such bonds. 

Article 55. 

Paragraph 1. Article 1, section 6, of the law relating to changes in the financial 
administration of July 15, 1909 (Reichs-Gesetzblatt, p. 743), shall be abrogated. 

Par. 2. With the approval of the imperial chancellor and within the first year after 
the coming into force of the third book of the Imperial Insurance Code the carriers of 
the accident insurance may pay to the Post Office Department in one amount the 
amounts still outstanding for the interest and refunding of the floating debt (arts. 779, 
1028, and 1185, of the Imperial Insurance Code). An interest rate of 3| per cent shall 
serve as basis in the computation of this sum. 

Par. 3. In the case of accident associations the general meeting of the association 
shall decide on the matter. 

Article 56. 

If undertakers of establishments or of activities which for the first time have been 
subjected to accident insurance by the Imperial Insurance Code, and before the com- 
ing into force of book three of the Imperial Insurance Code, have already concluded 
insurance contracts with insurance enterprises against accidents of the kind described 
in the Imperial Insurance Code, then the association on their application shall assume 
the rights and obligations arising out of these contracts. The application must.be 
submitted to the directorate within six months after the date designated. The trans- 
fer is effective from the date on which the accident insuraiice comes into force for the 
establishment or the activity. 

Article 57. 

The same is applicable if insurance enterprises before the coming into force of book 
three of the Imperial Insurance Code have concluded such contracts with insured per- 
sons employed in establishments or activities which for the first time have been sub- 
jected to accident insurance by the Imperial Insurance Code. 

Article 58. 

Paragraph 1. Articles 56 and 57 are not applicable if the contracts have been con- 
cluded after the publication of the decree designated in article 4 and within the last 
three months before the coming into force of the third book of the Imperial Insurance 
Code. 

Par. 2. This provision shall not be apj^licable if within the time designated the 
contract has been tacitly extended. 

Article 59. 

The expenditures incurred by the association from the taking over of insurance .con- 
tracts shall be covered by assessments on the members, and in so far as the acti\ity is 
insured on the premium basis in a branch institute this shall be considered at the next 
determination of the premiums. 



WORKMEN ^S INSURANCE CODE OF JULY 19, 1911 GERMANY. 767 

Article 60. 

Paragraph 1. With reservation of articles 85, 87 to 93, and 96 to 99, the provisions 
of the Imperial Insurance Code shall, if they are more favorable to the beneficiaries, 
be applied to the first determination of claims for compensation resulting from acci- 
dents which have happened before the third book of the Imperial Insurance Code 
comes into force. This is only applicable if the beneficiary already had a claim to 
compensation according to the old law, and if on that date no legal decision on the 
matter has been made. 

Par. 2. Paragraph 1 is only applicable to claims of compensation resulting in the 
case of a death, if the death of the injured person has also occurred before the third 
book of the Imperial Insurance Code comes into force. 

Article 61. 

In so far as a pension already determined has been suspended according to the 
old law, but not according to the new one, the provisions of the Imperial Insurance 
Code relating to the suspension of pensions are applicable to it beginning with the 
date when these provisions come into force; in such cases a new decision shall be 
announced. 

Article 62. 

Paragraph 1. The provisions relating to settlements to aliens by the payment of 
a capital sum corresponding to the value of their annuity, shall also be applicable to 
pensions which have been determined before these provisions come into force. 

Par. 2. If such a settlement is determined within the first three years after these 
provisions come into force, then the association may draw the means for it from the 
reserve. The reserve shall later be replaced according to decree of the Imperial 
Insurance Ofiice (or the State insurance office). 

Article 63. 

During the year 1913 the Federal Council shall lay before the Reichstag the legal 
provisions relating to reserves for a new decision. 

V. invalidity axd survivors' insurance. 

Article 64. 

Paragraph 1. If insured persons become invalids within the first five yeai"s 
after the insurance obligation for their branch of industry has come into force, then 
the duration of such earlier employment, for which the insurance obligation has been 
introduced in the meantime, shall be included in the computation of the waiting 
term for the invalidity pension (art. 1278, No. 1, of the Imperial Insurance Code). 

Par. 2. It shall be included in the computation only in so far as the employment 
occurs -within the last five years before the beginning of the invalidity, and only for 
such insured persons who, after the insurance obligation for their branch of industry 
comes into force as can prove the payment of at least 40 computable contributory weeks 
on the basis of the insurance obligation. 

Par. 3. ^Miether voluntary and compulsory contributions which have been legally 
used before the insurance obligation came into force shall be included in the computa- 
tion, shall not be affected in this case. 

Article 65. 

Paragraph 1. Insured persons who, when the insurance obligation for their 
branch of industry comes into force, have completed their fortieth year of life, shall 
be credited in the computation of the waiting term for the old-age pension with 40 
weeks for each full year of their age in excess of 40 years, and a proportionate number 
of weeks up to 40 for the part of such a year in excess. 

Par. 2. The insured persons must prove that during the three years immediately 
preceding the coming into force of the insurance, that they have been engaged in an 
employment as an occupation, even though with interruptions, which was already 
subject to insurance or has become such in the meantime. Whoever can prove a mini- 
mum of 200 computable contributory weeks on the basis of this insurance obligation 
for the first five years after the coming in force of the insurance obligation, is exempt 
from this proof. 



V68 BULLETIN OF THE BUREAU OF LABOK. 

Article 66. 

Paragraph 1. In the cases mentioned in articles 64 and 65, a period of military 
service or sickness computable according to article 30, paragraphs 2 to 6 of the in- 
validity insurance law, or according to articles 1393 and 1394 of the Imperial Insurance 
Code, as well as the period of the former receipt of an invalidity pension (art. 47, par. 
4 of the invalidity insurance law, and art. 1309 of the Imperial Insurance Code) is 
equivalent to a labor or service status for the period before the insurance obligation 
comes into force. 

Par. 2. The same is applicable for a maximum of four months during one calendar 
year to periods of — 

1. Temporary interruption of a permanent labor or service status with a specified 

employer; 

2. Such temporary interruptions which recur periodically (seasonal labor) in 

the case of an employment which is a regular occupation; 

3. An employment undertaken for the purpose of gain in spinning, knitting, 

or similar light home work which is customary for weak or aged persons. 

Article 67. 

Paragraph 1. If less than 400 contributory weeks have been proved at the grant- 
ing of an old-age pension according to article 65, then contributions of that wage 
class which corresponds to the average annual earnings of the insured person during 
the three years specified in article 65, paragraph 2, sentence 1, shall be applied for the 
missing weeks; these shall be not lower than the contributions of the first wage class. 

Par. 2. If more than 400 contributory weeks have been proved, then the pro- 
cedure shall be according to article 1293 of the Imperial Insurance Code. 

Article 68. 

In the computation of the waiting term for the claim to survivors' pensions (arts. 
1252 and 1278, No. 1, of the Imperial Insurance Code) the contributions paid accord- 
ing to the invalidity insurance law shall also be included up to December 31, 1930. 
After this date only contributions paid for the period after January 1, 1912, shall be 
included in the computation of the waiting term. 

Article 69. 

In rating the survivors' benefits (arts. 1292 and 1296 of the Imperial Insurance 
Code) in-order to compute the basic amount of the invalidity pension, the number of 
weeks short of 500 contributory weeks for the time after January 1, 1912, shall be made 
up from the highest contributions paid according to the invalidity insurance law. If 
the number of these contributions is not sufiicient. Wage Class I shall be applied to 
the missing ones. Only contributions paid for the period after January 1, 1912, shall 
be included in the computation of the supplementary rates of increase. 

Article 70. 

To the extent that the invalidity insurance shall be extended to new branches of 
industry after January 1, 1912, article 64 shall be applied in the computation of the 
waiting term for claims of the survivors' insurance. 

Article 71. 

Paragraph 1. Survivors of such insured persons who died before January 1, 1912, 
shall have no claim to the benefits provided by book four of the Imperial Insurance 
Code. 

Par. 2. The same is applicable to the survivors of such insured persons who, on 
the date named and in the meaning of article 5, paragraph 4, of the invalidity insurance 
law, were permanently disabled, and later died without having recovered their 
earning capacity in the meantime. 

Par. 3. Article 1291 of the Imperial Insurance Code is only applicable to persons 
in receipt of an invalidity pension whose permanent invalidity occurred after Decem- 
ber 31, 1911, or whose pension begins after this date according to article 1255, paragraph 
3, of the Imperial Insurance Code. 



WOKKMEN's insurance code of JTTLY 19, 1911 GERMANY. 769 

Article "ll. 

Paragraph 1. Stamps of old denominations (art. 130 of the invalidity insurance 
law) shall no longer be used for the time after January 1, 1912. 

Par. 2. Within tAvo years after the expiration of their validity, stamps no longer 
valid may be exchanged for valid stamps of the same money value at the places 
designated for their sale. 

Article 73. 

Paragraph 1. After January 1, 1912, those persons who were exempt according 
to article 5, paragraphs 1 and 2, of the invalidity insurance law, again become subject 
to insurance, unless the conditions of article 1234 of the Imperial Insurance Code 
are applicable in their cases. 

Par. 2. The same is applicable for persons exempt according to article 6, para- 
graph 1, and article 7, of the invalidity insurance law, so long as they are not again 
exempted from the insurance obligation according to the Imperial Insurance Code. 

Article 74. 

If, before January 1, 1912, or within one year after this date, an insured person 
whose claim has lapsed again takes up an employment subject to insurariee, or renews 
the insurance status by the payment of voluntary contributions, then the provisions 
of article 46, paragraph 4, of the invalidity insurance law shall continue to be appli- 
cable in regard to making the claim valid again, so long as the claim does not lapse a 
second time. 

Article 75. 

Paragraph 1. Article 43 of the invalidity insurance law remains applicable to 
those persons who before January 1, 1912, have become permanently disabled by 
accident in the meaning of article 5, paragraph 4, of the invalidity insurance law. 

Par. 2. Article 44 of the invalidity insurance law remains applicable to the refund 
of contributions of those persons who have died before January 1, 1912. Article 1522, 
paragraph 1, sentences 1 and 2, of the Imperial Insurance Code, shall be correspond- 
ingly applicable if the death on which the claim to the refund of contributions is 
based has been caused by an accident which is to be compensated according to the 
accident insurance laws. The insurance institute may demand reimbursement from 
the accident pension; articles 1507, 1523, and 1526 of the Imperial Insurance Code 
are in such case correspondingly applicable. 

Article 76. 

Contributions shall be refunded after January 1, 1912, according to article 42 of the 
invalidity insurance law, only if the application has been submitted before the public 
cation of the Imperial Insurance Code. 

Article 77. 

For cases in which after January 1, 1912, contributions have still to be paid, article 
128, paragraph 6, of the invalidity insurance law continues to be applicable. 

Article 78. 

Article 75, paragraph 2, sentences 2 and 3, and article 77, shall be correspondingly 
applicable to special institutes. 

Article 79. 

Claims to invalidity or old-age pensions for which on January 1, 1912, the determi- 
nation procedure is still pending, are subject, with reservation of article 71, paragraph 
3, and of articles 85, and 94 to 99, to the provisions of the Imperial Insurance Code, 
if these are more favorable to the beneficiaries. In so far as the Imperial Insurance 
Code is applicable, its nonapplication shall be considered a reason for revision (art. 
1697 of the Imperial Insurance Code), even if the arbitration court could not yet 
apply it. 

Article 80. 

Article 61 is correspondingly applicable to invalidity and old-age pensions. 



770 BULLETIN OF THE BUREAU OF LABOR. 

Article 81. 

Paragraph 1. The supervisory authority shall specify the date up to which the 
insurance institutes and the authorized special invalidity institutes (special institutes) 
must decide on the amendment of their constitutions according to the Imperial 
Insurance Code. This date is to be specified in such a manner that the constitutions 
may come in force on January 1, 1912. 

Par. 2. If an insurance carrier does not comply ^dth the decree in due time, then the 
supervisory authority shall amend the constitution. 

Article 82. 

Article 54 is correspondingly applicable to the insurance institutes. 

Article 83. 

Paragraph 1. Up to March 31, 1912, special invalidity institutes authorized 
according to the laws of June 22, 1889, and July 13, 1899, shall be regarded by the 
Federal Council as special institutes according to articles 1360 to 1380 of the Imperial 
Insurance Code without a new authorization. When the survivors' insurance comes 
into force, they must grant survivors' pensions according to the Imperial Insurance 
Code. 

Par. 2. The validity of the contributions paid after survivors' insurance comes 
into force and up to March 31, 1912, may not be contested because their amount was 
afterwards proved to be insufficient. 

Article 84. 

During the year 1915 the Federal Council shall present to the Reichstag the legal 
provisions relating to old-age pensions for a new decision. 

VI. procedure. 

Article 85. 

If a procedure is already pending on the date on which the provisions of book 6 of 
the Imperial Insurance Code come into force then it shall be terminated according to 
the provisions in force up to the present time, unless articles 86 to 99 proA-ide otherwise. 

Article 86. 

If, on the date specified in article 85, a procedure which is to be discharged according 
to article 58 (or according to art. 65, par. 3, art. 72, pars. 2 and 4, and art. 73, par. 1) 
of the sickness insurance law, is still pending before the supervisory authority of a 
communal sickness insurance or of a sick fund, then the matter is to be transferred to the 
local insurance office, if it has not yet been decided; the provisions of the Imperial 
Insurance Code are applicable to the further procedure. 

Article 87. 

' The provision of article 86 is also applicable to the following cases in which — 

1. The decision has been transferred to another authority in place of the super- 

visory authority (art. 58, par. 1, sentence 2, and art. 84, par. 3, of the sickness 
insurance law) ; 

2. On the date specified in article 85 a procedure is pending before the super- 

visory authority according to — 

Article 136, paragraph 6, of the law of May 5, 1886, relating to the accident and 
sickness insurance of persons employed in agricultural and forestry estab- 
lishments; 

Article 26, paragraph 2, and article 27, of the industrial accident insurance law; 

Article 29, article 31, paragraph 2, and article 32, of the accident insurance law 
for agriculture and forestry ; 

Articles 9 and 11 of the building accident insurance law; 

Article 30, paragraph 2, articles 31 and 156, of the navigation accident insurance 
law; 

Article 23, paragraph 2, of the invalidity insurance law. 



workmen's insurance code of JULY 19, 1911 — GERMANY. 771 

Article 88. 

Paragraph 1. The provisions of the Imperial Insurance Code are applicable to 
the determination for the first time of benefits of the accident insurance, if on the 
date specified in article 85 the preliminary decision has not yet been given (art. 70, 
par. 1, of the industrial accident insurance law, art. 76, par. 1, of the accident insurance 
law for agriculture and forestry, art. 37, par. 1, of the building accident insurance law, 
and art. 75, par. 1, of the navigation accident insurance law). 

Par. 2. The same is applicable to the new determination of benefits of the accident 
insurance in the form of treatment in a medical institution. 

Article 89. 

The old provisions are applicable to the new determination of benefits of the acci- 
dent insurance after a change of condition, if before the date specified in article 85 — 
The beneficiary has been notified of the reasons on account of which the pension 

is to be reduced or withdrawn; or 
The claim for an increase or for a second grant of the pension has been submitted; 

or 
The application for a decision has been submitted to the arbitration court. 

Article 90. 

Paragraph 1. The provisions of the Imperial Insurance Code shall be applied if 
the insurance carrier has on the date specified in article 85 not yet received a notifica- 
tion, in cases in which — 

Benefits of the accident insurance shall cease, because the right to the receipt 

of the pension has been suspended ; or 
An accident pension shall be replaced by the payment of a lump sum. 
Par. 2. The same is applicable to cases in which the accident insurance carrier is 
willing to grant treatment in a medical institution. 

Article 91. 

Paragraph 1. The procedure for the determination, as to which carrier of the acci- 
dent insurance shall be required to pay compensation (art. 73, par. 2, of the industrial 
accident insurance law, art. 79, par. 2, of the accident insurance law for agriculture and 
forestry, and art. 78, par. 2, of the navigation accident insurance law), shall be regulated 
according to the Imperial Insurance Code, if the application for the decision of the 
Imperial Insurance Office (or the State insurance office) has been submitted after the 
date specified in article 85. 

Par. 2. The same rule shall be applicable in regard to the distribution of the cost of 
compensation among several carriers of the accident insurance (art. 85 of the industrial 
accident insurance law, art. 91 of the accident insurance law for agriculture and for- 
estry, art. 37, par. 1, of the building accident insurance law, and art. 89 of the naviga- 
tion accident insurance law). 

Article 92. 

Article 1608, paragraph 2, sentence 2 of the Imperial Insurance Code shall not be 
applicable, if the new procedure is regulated according to the Imperial Insurance 
Code; however, the earlier procedure is regulated according to the old provisions. 

Article 93. 

The provision of article 43, paragraph 2, of the accident insurance law for agriculture 
and forestry shall remain in force so long as disputes relating to agriculture and forestry 
are still to be settled by administrative procedure according to the old pro\dsioiis after 
the date specified in article 85. 

Article 94. 

Paragraph 1. If on the date specified in article 85 the lower administrative au- 
thority or the local pension office (Rentcnsfelle) has, in matters of the invalidity insur- 
ance, not yet given an opinion on an application for the granting, withdrawal, or sus- 
pension of benefits, then the matter shall be transferred to the local insurance office; 
the further procedure shall be regulated according to the Imperial Insurance Code. 

Par. 2. The same rule is applicable in cases of article 112, paragraph 3, of the inva- 
lidity insurance law, if the oral proceeding is to be taken up later. 



772 BULLETIN OF THE BUREAU OF LABOE. 

Article 95. 

The procedure in the case of the refund of contributions (art. 42 to 44 of the invalidity 
insurance law)^ shall be regulated according to the provisions in force up to the present 
time; but, beginning with the date specified in article 85, the local insurance oflace shall 
take the place of the lower administrative authority or of the local pension office 
(Rentenstelle) or of the authority designated by the highest administrative authority 
(art. 128, par. 1 of the invalidity insurance law). 

Article 96. 

Against decisions which have become valid before the date specified in article 85, 
or have been handed down in a procedure according to the old provisions and have 
become valid after that date, the resumption of the procedure shall take place accord- 
ing to the Imperial Insurance Code. 

Article 97, 

For the settlement of matters pending to which the old provisions are to be applied, 
the superior insurance offices after their establishment shall take the place of the arbi- 
tration courts, and the newly formed senates of the Imperial Insurance Office (or State 
insurance office) that of the old senates. 

Article 98. 

The highest administrative authority shall specify on which date the superior insur- 
ance office shall select for the first time according to article 1686 of the Imperial Insur- 
ance Code from its district the physicians whom it wishes to call in as experts according 
to need. Up to this time, the physicians already elected shall also be called in as 
experts for those matters which are to be decided according to the Imperial Insurance 
Code. 

Article 99. 

Within the first five years after the date specified in article 85, the superior insurance 
office shall also transmit the case according to articles 1693 and 1799 of the Imperial 
Insurance Code to the Imperial Insurance Office (or State insurance office) for deci- 
sion if it desires to dissent in matters of the sickness insurance from a decision of the 
Imperial Supreme Court (ReichsgericJit) or of the highest administrative court of the 
federal State in which it has its seat. 

vii. final provision. 

Article 100. 

The Federal Council may decree still other transitory regulations. The regulations 
shall be published in the Reichs-Gesetzblatt and be presented to the Reichstag at its 
next session for its information. 

SECTION B. 
Article 101. 

Paragraph 1. On the date specified in article 4, the following shall be abrogated: 
Number 5 of article 4, paragraph 1, of the law on industrial courts (Reichs-Gesetzblatt, 
1901, p. 353) and number 5 of article 5, of the law relating to commercial courts (Reichs- 
Gesetzblatt, 1904, p. 266). 

Par. 2. Disputes which have become pending before this date shall be settled by 
the authorities which have been competent up to the. present time. 

Article 102. 

On the date Bpecified in article 4, article 90 of thelnduatrial Code shall be abrogated. 



WOEKMEN's IXSUBANCE code of JULY 19, 1911 GEEMANY. 773 

Article 103. 

On the date specified in article 4, the following articles of the Industrial Code shall 
take the forms specified below: 
Article 62, paragraph 2. 

Articles 81a, 81b, and article 95, paragraph 4. 
Article 98, paragraph 3. 
Articles 1001, 100m, and lOOn, paragraph 1. 

Article 62, Paragraph 2. 

The permission shall be refused in so far as one of the conditions designated in 
article 57 is applicable to them, or if the sick-fund contributions required by the 
Imperial Insurance Code have not been paid for them or no respite has been 
granted for the payment; in addition, it may only be refused, in so far as one of the 
conditions designated in articles 57a and 57b is present. The permission shall be 
revoked according to the provisions of article 58 by one of .the authorities compe- 
tent for the granting of it. 

Article 81a. 

The purpose of the guilds shall be — 

1. The cultivation of a spirit of mutual regard as well as the maintenance and 

development of professional ethics among the members of the guild. 

2. The promotion of cordial relations between masters and journeymen (help- 

ers) as well as provision for journeymen's lodging houses and employment 
bureaus. 

3. The detailed regulation of the apprenticeship system and the provision 

for the technical, industrial, and ethical education of the apprentices, 
with reservation of articles lOSe and 126 to 132a. 

4. The settlement of disputes of the kind specified in article 4 of the law on 

industrial courts (Reichs-Gesetzblatt, ]901, p. 353) between members 
of the guild and their apprentices. 

Article 81b. 

Paragraph 1. The guilds are authorized to extend their acti\dties to other com- 
mon industrial interests of the members of the guild. In addition to the estab- 
lishment of guild sick funds, they are specially authorized — 

1. To take measures for the promotion of the industrial, technical, and ethical 

education of the masters, journeymen (helpers), and apprentices, es- 
pecially to assist, establish, and direct schools as well as to issue provisions 
for the utilization and attendance of the schools established by them. 

2. To hold examinations for masters and journeymen, and to issue certificate? 

based on the examinations. 
-3. To establish funds for the relief of their members and their relatives, their 
journeyruen (helpers) and workmen in case of sickness, death, disable- 
ment, or other need. 

4. To establish arbitration courts, which, in the place of the otherwise com- 

petent authorities, are to settle disputes of the kind designated in article 4 
of the law on industrial courts between the members of the guild and 
their journeymen (helpers) and laborers. 

5. To establish mutual enterprises for the promotion of the business of the 

members of the guild . 
Par. 2. The establishment and the legal status of sick funds shall be regulated 
according to the Imperial Insurance Code. 

Article 95, Paragraph 4. 

The execution of decisions of the guild meeting on matters specified in paragraph 
2 must have the approval of the journeymen's committee. If the approval is re- 
fused, then the supervisory authority may supplement the same. The participa- 
tion of the journeymen's committee in the affairs of the guild sick funds shall be 
regulated according to the Imperial Insurance Code. 

18544°— No. 96—12 28 



774 BULLETIN OF THE BUEEAU OF LABOR. 

Article 98, Paragraph 3. 

If other relief funds have been combined with the guild as guild sick funds, then 
the superior administrative authority may, after the dissolution or closing of the 
guild, grant them corporation rights; in this case the funds retain their assets. 

Article 1001. 

If other funds for the relief of sickness have been united as guild sick funds with 
a guild which has been closed on account of the establishment of a compulsory 
guild , then articles 98 and 98a shall be applicable. With the approval of the repre- 
sentation of the relief fund, the compulsory guild may take this fund over with all 
its rights and obligations, in so far as statutory provisions or provisions of the State 
law do not forbid such action. In the latter case the existing members of this fund 
are entitled to belong to it even if they do not belong to the compulsory guild. 

Article 100m. 

If members withdraw from a guild because of the establishment of a compul- 
sory guild from an existing guild , with which another relief fund was united as a 
guild sick fund (art. 100b, par. 5,) then they may continue to belong to this fund. 

Article lOOn, Paragraph 1. 

Members of guilds shall not be obliged, against their will, to participate in other 
relief funds as guild sick funds. 

Article 104. 

In so far as laws and other legal rules refer to provisions which the Imperial Insurance 
Code or which this law takes over, amends, or abrogates, the corresponding provisions 
of the Irdperial Insurance Code or of this law shall take the place thereof. 



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